Royal London to reduce carbon intensity in passive equity funds in ESG push

£23bn of funds affected

Royal London has plans to reduce the carbon intensity found in its flagship passive equity funds' ‘governed range’ by more than 10%, in a bid to embed responsible investment across its investment offerings.

The pension provider is introducing 'tilts' to its £23bn collection of passive equity funds, including in its flagship 'governed range'. The 'tilted' equity funds will increase holdings of companies with good ESG practices, and reduce holdings in companies with poorer practices. As a result, the carbon intensity of the equity investments in its 'governed range', which has around 125 million customers' pensions invested in it, is expected to reduce by more than 10%. Royal London Asset Management names Hans Georgeson as new CEO Royal London said the move strengthens the pensio...