Royal London Asset Management (RLAM), one of the UK’s leading fund management companies, has today published its Responsible Property Investment Strategy and Net Zero Carbon Pathway.
The launch of the Responsible Property Investment Strategy builds on RLAM’s previous commitments and achievements by embedding more ambitious Environmental, Social and Governance (ESG) performance goals throughout the property lifecycle, and developments, with actions set over the short, medium, and long term.
The Net Zero Carbon Pathway is targeting 2030 for directly managed assets (1) and developments (2), and 2040 for indirectly managed assets (3) – a decade earlier than the 2050 goal stated in the Paris Agreement (4). The implementation strategy of the pathway focuses on reducing embodied carbon and increasing operational efficiency and renewable energy supplies, alongside considering implementing high quality carbon offsets for residual emissions. This has followed an extensive assessment of the carbon emissions within the RLAM property portfolios and evaluated the reductions and interventions required.
Commenting, Mark Evans, Head of Property and Commercial Development, said:
“As a leading Property asset manager we firmly believe that we must do more than just generate returns. It is in the best interest of our clients that we integrate ESG into our investment process with the aim of improving standards, reducing risk, and enhancing returns, that equally delivers benefits for the environment and society as a whole.”
RLAM are signatories to the Net Zero Asset Managers Initiative, an international group of asset managers who are committed to achieving net zero carbon by 2050, as well as supporting investment that is aligned with net zero carbon goals.
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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.
Notes to Editors:
Property net zero carbon pathway: www.rlam.co.uk/PNZ
Responsible property investment strategy: www.rlam.co.uk/RPI
(1) Directly managed assets are those which RLAM has complete operational control, greater than 50% equity share, and joint ventures where they would cover the proportionate amount of emissions.
(2) Developments are any new development or major refurbishment that comes online from 2030 onwards.
(3) Indirectly managed assets are managed wholly by the occupier.
(4) The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at COP 21 in Paris, on 12 December 2015 and entered into force on 4 November 2016. The Paris Agreement sets out a global framework to avoid dangerous climate change by limiting global warming to well below 2°C and pursuing efforts to limit it to 1.5°C. It also aims to strengthen countries' ability to deal with the impacts of climate change and support them in their efforts.