Climate Change Data

Pension Insurance Corporation Group Limited

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:2,515,706 tons CO2e (Scope 1 & 2, 61% of portfolio covered)

ESG Focus Areas

  • Climate Change
  • Social Value Creation
  • Governance

Environmental Achievements

  • Reduced CO2e emissions per FTE by 18% from 2021
  • £1.5 billion invested in renewables since 2012, avoiding 152,421 tons CO2e emissions
  • Developed an in-depth ESG due diligence assessment for built environment investments, aiming for a minimum B rating

Social Achievements

  • Launched PIC Academy, an early careers talent programme with 11 apprentices in 2022
  • Donated £1.5 million to Independent Age to support older people during the cost-of-living crisis
  • Achieved Investors in People silver accreditation

Governance Achievements

  • Established a Board-level ESG Committee
  • Published standalone Stewardship and ESG Policies
  • All external asset managers are UN PRI signatories

Climate Goals & Targets

Long-term Goals:
  • Net Zero through all emissions by 2050
Medium-term Goals:
  • Reduce corporate credit portfolio emissions by 50% by 2030
  • Reduce PIC’s total (Scope 1, 2 & 3) emissions by 50% by 2030
Short-term Goals:
  • Carbon neutral (Scope 1 and 2 emissions) as a business by 2025
  • Reduce corporate credit portfolio emissions by 25% by 2025

Environmental Challenges

  • Data limitations in sourcing information from privately sourced debt markets for carbon emissions calculations
  • Limited control over emission and energy saving actions within leased office building
Mitigation Strategies
  • Partnered with third parties (e.g., MSCI, Buro Happold) to improve data coverage and ESG assessment
  • Implemented small behavioral changes to reduce operational emissions (e.g., LEDs, passive infrared sensors)

Supply Chain Management

Responsible Procurement
  • Setting high sustainability standards across the supply chain

Climate-Related Risks & Opportunities

Physical Risks
  • Ground flooding
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Investment in renewable energy and energy-efficient assets

Reporting Standards

Frameworks Used: TCFD, UN PRI

Certifications: Investors in People Silver

UN Sustainable Development Goals

  • Goal 3
  • Goal 4
  • Goal 6
  • Goal 7
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 15

Investments support 10 out of 17 UN SDGs

Awards & Recognition

  • Deal of the Year Award at Insider’s North West Residential Property Awards

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Long-term sustainable business
  • Responsible investing
  • Protecting the environment
  • Making communities sustainable, safe and inclusive

Environmental Achievements

  • Surpassed 2025 portfolio decarbonisation target
  • Reduced Scope 1 and 2 emissions intensity by 26%
  • Public corporate credit portfolio aligned to a 1.9°C temperature rise

Social Achievements

  • 90% employee engagement score and 9.9% employee turnover
  • 99.3% policyholder satisfaction score
  • £250,000 donated to charities
  • Over 600 hours of CPD qualifying sustainability training undertaken by employees

Governance Achievements

  • Distributed sustainability responsibilities across the Board and Executive Committee
  • Appointed Board level and Executive level Sustainability leads
  • Launched a Sustainability Champions programme
  • Accepted as signatories to the UK Stewardship Code
  • Rolled out a Sustainability Target Operating Model

Climate Goals & Targets

Long-term Goals:
  • Net Zero across all emissions by 2050
Medium-term Goals:
  • Decrease the investment portfolio’s average carbon intensity by 50% by 2030 from 2019 levels
Short-term Goals:
  • Carbon neutral as a business by 2025
  • Decrease the average carbon intensity of investments in publicly listed corporate credit by 25% from 2019 levels by 2025

Environmental Challenges

  • Managing climate and environmental risk across the investment portfolio and operations
  • Balancing the need for improvements in environmental and governance issues with affordability for customers in the UK water utilities sector
  • Regulatory oversight and investment grade rating requirements in the UK water utilities sector limiting firms' control over spending and capital raising for investment plans
Mitigation Strategies
  • Enhanced governance and accountability over climate risks
  • Developed a Climate Transition Plan aligned with the Transition Plan Taskforce framework
  • Established a Climate Change Risk Policy
  • Performed a quantitative climate change scenario analysis on the investment portfolio
  • Partnership with CUR8 for carbon offsetting
  • Collaborative engagement initiative with Royal London Asset Management in the UK water sector to address climate change adaptation, biodiversity, affordability, and AMR

Supply Chain Management

Responsible Procurement
  • Draft Supplier Code of Conduct
  • Supplier ESG Due Diligence process and questionnaire (planned rollout in 2024)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, UNPRI, UK Stewardship Code

Third-party Assurance: KPMG (Limited Assurance on TCFD climate metrics)

Awards & Recognition

  • Customer Commitment Award at the Institute of Customer Service Awards