Legal and General Retirement (LGR) has announced its commitment to reduce the carbon emission intensity of its current £80.7bn annuity portfolio by 18.5% by 2025, and by 50% by 2030.
The insurance giant is targeting a net-zero portfolio by 2050 and said it “strongly” supports the Paris Climate Agreement.
Furthermore, LGR launches its new Environmental, Social Impact and Governance (ESG) policy, the pension sector’s most comprehensive publicly available document outlining a provider’s approach to ESG.
Laura Mason, chief executive officer at LGR, said: “Legal & General are committed to investing where we can deliver a social good and achieve our ambition of driving “inclusive capitalism”, while delivering the returns that secure our pension policyholders benefits.
“This document, for the first time, captures our ESG policies in one place for our customers and investors, detailing the key principles that drive our corporate strategy and shape our culture.”
She added: “Climate change is a serious threat, and we recognise that our scale brings a responsibility to take action. I am proud of the ambitious targets we have set – including to halve the carbon emission intensity of our £81bn annuity book over the next 10 years – and am committed to putting this aim at the forefront of our decision-making.
“The insurance sector has an important role to play in using pension money to invest in sustainable projects across the UK, and I hope that our new policy document will highlight how we and others can play our part in tackling climate change.”