Baseline date: 31 December 2020

Baseline performance: 62.5tC02e/$mn invested for listed equity and listed corporate bonds (scope 1 and 2)

Target year(s): 2030, 2050

Target(s): -50% tCO2e/$mn invested by 2030

Net zero by 2050 or sooner

GHG scopes included: Scope 1 and 2 emissions for listed equities and listed corporate bonds. Scope 3 emissions to be included in the future when data coverage and quality improves. Note we appreciate this will lead to short term fluctuations against our target.

Asset classes in scope: The target portfolio reference target covers all asset classes. However, currently only measure and report on listed equities and listed corporate bonds. Other asset classes will be reported as data coverage and quality improve.

Net zero scenarios/methodology: Methodology used is consistent with the IIGCC Net Zero Investment Framework. Scenarios used are consistent with global 1.5 degree scenarios in the Intergovernmental Panel on Climate Change (IPCC).

Emissions metrics: In aggregate, AUM is expected to reduce over time, reducing carbon intensity should lead to a reduction in absolute emissions.

Qualitative target

Approach: We are committed to increasing investment in climate solutions in line with our fiduciary duties and risk appetite. No quantitative target has been set at this point in time. We expect our allocation to climate solutions to increase as investment opportunities that meet our risk appetite expand.

Baseline date: 31 December 2020

Baseline performance: 42% of assets meeting at least “aligning” criteria

Target year: 2030

Target: 100%

Asset classes in scope: The target covers all asset classes. However, the baseline only includes listed equities, listed corporate bonds, sovereign bonds and real estate. Other asset classes will be reported as data coverage and quality improve.

Methodology: Our approach to assessing alignment to Paris is top-down focused at present. It varies by asset classes and is subject to data availability (currently limited to scope 1 and 2 emissions) and practicality of assessing alignment to Paris for that asset class.

For example, for Sovereign Bonds we rely on the Sovereign’s legally binding commitment to the Paris Agreement. For other asset classes, we assess emissions against Paris Aligned Benchmarks and other external data points that could be reasonable and practical for assessing alignment to Paris.

Over time our approach will evolve to focus on a bottom-up assessment of the portfolio where possible to do so as data quality and coverage improves.

Approach: Our engagements with companies are through our investment managers, where the majority of them are members of the Climate Action 100+ initiative. We have active engagement with all of our investment managers on the portfolio holdings, including those in material sectors. We also engage with consultants, custodians/administrators, data providers and the wider investment community to achieve net zero by 2050.