Aegon UK has published its first Climate Roadmap, which sets out its plans to reduce the carbon footprint of its investments.
The pension and investment group said the Roadmap will outline its vision and activities needed to reach net zero greenhouse gas emissions by 2050 across its workplace default funds, including short-term emissions reduction targets.
In addition, Aegon UK has also pledged to invest £500 million in climate solutions by 2026, with an intention to increase it over time.
The firm’s 2022 annual responsible investment customer survey found that climate change is a major concern for UK investors, with almost three quarters of customers agreeing climate change is an important risk when investing and two thirds concerned about the physical effects of draughts, wildfires, deforestation and high temperatures.
Tim Orton, chief investment officer at Aegon UK, says: “We have a responsibility to use our size and resources to help address this challenge. Our Climate Roadmap shows how Aegon UK is embracing change to succeed in the net-zero transition, starting with our default funds.
“I hope that being transparent about our climate targets and progress will inspire others to do the same and increase accountability across the pensions industry.”
Hilkka Komulainen, head of responsible investing at Aegon UK, added: “The global economy is at an inflection point, and as one of the UK’s largest pension providers, we must do what we can to mitigate the systemic portfolio risks of climate change. Protecting our customers from the worst effects of climate change requires urgent action, and I am especially proud of our short-term targets and commitment to taking action now.”
