The Royal London Mutual Insurance Society Limited
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Renewable Energy Share:51%
ESG Focus Areas
- Climate Change
- Social Inclusion
- Responsible Investment
Environmental Achievements
- Reduced Scope 1 and Scope 2 location-based emissions by 21% since 2022 and 64% since 2019.
- Reduced Scope 3 non-investment value chain emissions by 28% since 2019.
- Reduced carbon footprint (Scope 1 and 2 tCO2e/$m invested) from our corporate fixed income and listed equity portfolio by 10% from 2022 and 19% since 2020.
- Reduced Scope 1 and 2 emissions from property investments by 20% since 2020.
- Reduced Scope 3 emissions from property investments by 14% since 2020.
Social Achievements
- Launched a Sustainability Learning Programme in 2022 and expanded responsible investment and sustainability training in 2023.
- Developed a single Voting Policy applied across the Royal London Group.
- Engaged with 36 investee companies representing 52% of financed emissions on climate-related issues.
- Engaged with 59 companies on just transition themes.
- Held a week-long Sustainability Summit with over 370 colleagues.
Governance Achievements
- Refined approach to internal climate risk reporting to the Group Executive Risk Committee.
- Increased visibility of how climate risks are managed throughout the business.
- Established an internal biannual climate risk report.
- Developed more targeted responsible investment and sustainability colleague training.
- Established a single Voting Policy across the Royal London Group.
Climate Goals & Targets
Long-term Goals:
- Achieve net zero in Scope 3 emissions (non-investment) by 2050.
- Achieve net zero portfolio emissions by 2050.
Medium-term Goals:
- Reduce Scope 3 emissions (non-investment) by 50% by 2030.
- Achieve net zero in direct operational emissions (Scopes 1 and 2) by 2030.
- Reduce portfolio emissions by 50% by 2030.
Short-term Goals:
- Purchase 100% renewable energy for operations (Scope 2) by 2025.
- Reduce direct Scope 1 emissions by 60% by 2025.
- Reduce external paper use by 50% and internal paper use by 90% by 2025.
Environmental Challenges
- Data quality and methodology gaps across different asset classes.
- Lack of consistency across the industry in climate data.
- Data quality and transparency issues.
- Uncertainty surrounding the timing and severity of potential climate impacts.
- Government and policymaker activity impacting future changes in climate disclosures.
Mitigation Strategies
- Developed a data improvement plan.
- Embedded climate considerations in investment processes.
- Engaged with asset managers and top-emitting investee companies.
- Set clear strategies and took actions to reduce operational and value chain emissions.
- Performed customer sentiment research to understand customers’ top climate-related priorities.
Supply Chain Management
Responsible Procurement
- Engaging with suppliers on emissions reduction initiatives.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Flooding
- Temperature changes impacting mortality and morbidity assumptions
Transition Risks
- Regulatory changes
- Market shifts
- Disruptive green technologies
- Policy changes
Opportunities
- Increased market share from developing net-zero aligned products.
- New revenue streams from ESG investing and net-zero aligned investments.
- Reduced operating costs through energy efficiency improvements.
- Opportunities to generate onsite renewable energy.
Reporting Standards
Frameworks Used: TCFD
Third-party Assurance: ERM CVS
Sustainable Products & Innovation
- Sustainable investment products
- Global equity transitions strategy