Image: Aegon UK Chief Investment Officer Tim Orton
Aegon UK has created a plan for taking decisive action on climate change to achieve zero emissions by 2050. They emphasize that this must be done without further delay.
Yesterday, the firm specializing in insurance, pensions, and asset management declared that their core business and the financed emissions of their workplace default pension funds would aim for a net zero target.
Aegon UK has vowed to cut its emissions by 50% within the next decade, which they believe will bolster their customers' investments and make them more resistant to potential disruptions.
In addition, the company declared that, as a crucial step, it will invest £500 million annually into climate-related initiatives by 2026 to gradually up the figure.
The company elucidated that investments that positively influence climate change are climate solutions. According to industry guidance, decarbonizing funds and direct investments in climate solutions are essential to battle climate change effectively.
The international giant, with nearly 29 million patrons and over €750bn invested each year, declared that it is "obvious the world is not on track" to meet the temperature goals of the Paris Agreement and that climate change is a predominant worry for their customers.
According to the firm's survey results, most of their customers expressed concern over issues such as droughts and wildfires, deforestation, and rising temperatures.
Tim Orton, the head of investments, declared that being unable to take action against climate change is the most significant test our planet is currently confronting.
He stated that Aegon UK must utilize their size and assets to tackle this issue. Their climate roadmap demonstrates how they embrace change to achieve net zero transition, beginning with their default funds. He also mentioned that by being open about their climate goals and advances, he desires that it will persuade others to follow suit and establish responsibility in the pensions business.
Hilkka Komulainen, who is responsible for investing, stated: "We are at a crucial juncture in the global economy and, as one of the UK's most significant pension providers, we should do what we can to reduce the portfolio dangers posed by climate change. Safeguarding those we serve from the most serious consequences of climate change necessitates prompt action. I am gratified that we have set short-term goals and are taking immediate measures."
Tony Burdon, the Chief Executive Officer of Make My Money Matter, an organization advocating for an environmentally-friendly pensions and investments sector, expressed his approval concerning Aegon UK's pledges.
He continued, indicating that the entire pensions sector must take the initiative to handle the sizable climate-related challenges and openings.