Phoenix Group sets 2025 and 2030 carbon reduction targets

Written by Michael Griffiths

04/10/2021

Phoenix Group has announced it is setting both 2025 and 2030 carbon intensity reduction targets for its investment portfolio.

The insurer confirmed the interim targets are part of a pathway to achieving net zero carbon for investments by 2050 in line with its science-based targets commitments, and will form a “key element” of its overall approach to responsible investment.

Phoenix stated that the new targets will reduce carbon emission intensity by at least 50% by 2030, and will apply to £250bn of investments. The group estimates that once achieved, the impact of the 2030 target its setting will deliver carbon reductions equivalent to the annual emissions of heating over six million homes, or a quarter of all homes in the UK.

Within the £250bn figure, £160bn is invested in pension funds, spanning customers of Standard Life, Phoenix Life and Reassure, who are all part of Phoenix. The group has around 13 million customers, many of whom are pension savers.

Phoenix Group CEO, Andy Briggs, commented: “We have set an ambition to lead the way on responsible investment and to drive forward action to support the transition to a zero carbon economy.

“Setting interim near-term targets is an important milestone on our journey to our investments becoming net zero by 2050 or earlier, to which I am personally committed. Within this, some £160bn of assets invested for our pension customers are going on that journey with us.

“Investing responsibly is also about encouraging good corporate governance practices and positively contributing to environmental and wider societal issues, while managing risk and ensuring good outcomes for customers. We have been working with government and our industry to influence legislation that will enable our entire industry to invest more in sustainable assets.

“With just 20% of the world’s largest public companies having committed to net zero targets, and only a quarter of these pledges passing basic robustness tests, we are encouraging others to take action and set near-term targets in line with the climate science too. We will be working with partners in the financial ecosystem and the many companies we invest in to encourage wider uptake of robust net zero aligned pledges and plans.”

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