Top investment consultancy and leading asset manager ramp up their support for net zero transition
Redington has announced it will align all default client advice with the goal of reaching net zero emissions by 2050 at the latest, as outlined in the Paris Agreement.
The investment consultant estimated that, as a result of the change most clients will achieve a 50 per cent reduction in their carbon emissions by 2030.
The move sits alongside the firm's broader seven-point climate action plan to integrate sustainability considerations across its entire business, including commitments to reduce and offset its own emissions.
Redington chief executive Mitesh Sheth said: "Effective immediately, our default position will be to deliver investment advice that is aligned with achieving the goals of the Paris Agreement, reaching net zero by 2050 at the latest.
"This represents the biggest transition that we as a business have gone through since our founding, but something that we believe is vital in order to truly make an impact through our influential role in the broader value chain."
Sheth added the global transition to net zero was a "monumental task" which would require continual innovation, experimentation, and the sharing of different perspectives.
He said: "We can only achieve this through collaboration with our clients, asset managers, industry peers, and policy makers. Together, we can make a meaningful difference."
Fidelity pledge
The move comes as Fidelity International pledged to reduce carbon emissions within FutureWise, its default investment strategy for UK-based pension schemes, to half by 2030, putting it on track to deliver net zero emissions by 2050 or before.
The asset manager and defined contribution provider said the targets will align the strategy's underlying investments with its commitment to support the goal of net zero greenhouse gas emissions by 2050 or sooner as part of the Net Zero Asset Managers initiative.
The latest step forms part of a series of initiatives established by Fidelity's workplace investing business to mark its commitment towards sustainability, including the development of a sustainable investment policy and the incorporation of carbon metrics and environmental, social, and governance (ESG) scores for funds on its platform within factsheets.
Fidelity head of global workplace investing Keith Metters said: "Almost two-thirds (61 per cent) of our members believe workplace pension schemes should automatically incorporate sustainability within their default investment strategy, and today's announcement marks our latest step towards this.
"Our pledge to reduce carbon emissions within FutureWise is one of several commitments we have made towards a more sustainable future - in both how we operate as a company, as well as in the products and services we offer our clients and their members."
Fidelity global head of stewardship and sustainable investing, Jenn-Hui Tan, added: "At Fidelity, we recognise that climate change poses one of, if not the most, significant risks to the long-term profitability and sustainability of companies, including our own. We take a pro-active approach to minimising our own environmental footprint and we are committed to achieving net zero emissions by 2040 for Fidelity International's operational emissions.
"Our announcement today to achieve net zero for FutureWise aligns with our commitment under the Net Zero Asset Manager initiative to support investing aligned with net zero emissions by 2050 or sooner and to accelerate that transition across all of our investment portfolios."
This article first appeared at Professional Pensions