You are using an outdated browser. Please upgrade your browser to improve your experience.

Royal London Asset Management supports SSE’s Just Transition report

23rd May 2023

Royal London Asset Management welcomes the publication of SSE’s latest Just Transition report, which follows the launch of the company’s Just Transition Strategy in November 2020.

Royal London Asset Management has been engaging with the energy utilities sector on the topic of Just Transition since 2019.

In SSE’s report, which Royal London Asset Management was consulted on, the company explores the impact its 20 principles for a Just Transition have had across its operations, providing evidence of actions and progress the company has achieved on the back of its Just Transition Strategy.

In March 2022, Royal London Asset Management expanded its engagement programme, resulting in more stringent assessments of companies. It has extensively engaged with SSE for several years, having witnessed SSE emerge as a thought leader in the utilities sector. This has included encouraging the publication as an accountability mechanism and providing initial feedback on SSE’s Just Transition report.

Royal London Asset Management expects to evolve its stewardship activity in this area going forward, reflecting the latest developments in client needs, regulation, and industry-wide best practice.

Its Just Transition priorities for 2023 include ensuring all companies that are part of its net zero engagement programme consider Just Transition in their climate transition plans. The company will continue to work with energy utility, banks and social housing, as well as identifying more sectors where Royal London Asset Management’s engagement could best further the common objectives of generating value for the company, its investors and society.

Following the COP27 climate conference, Royal London Asset Management expects to see more focus on financing for adaptation to climate impacts over the course of 2023. It will be working with water utilities companies to better plan for long-term climate adaptation as well as Just Transition.

Commenting on the SSE Just Transition Report, Carlota Garcia-Manas, Head of Climate Transition and ESG Engagement, Royal London Asset Management said:

“We welcome the publication of SSE’s report, which shows it is putting Just Transition principles into action. Achieving a Just Transition by ensuring that social considerations are at the heart of the climate transition is crucial if we are to minimise the disruption of moving to a low carbon economy. Royal London Asset Management has encouraged SSE to measure progress and disclose their impact in the real world as part of its Just Transition strategy.

“Our approach focused on engagement and collaboration, forms a core component of our stewardship responsibilities. Our engagement has the objective of amplifying the common aims we have of creating value for the company, its investors and society. We are delighted that the concept of Just Transition is fast becoming normalised within climate disclosures and that SSE is leading the way.”

– ENDS –

The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.