On the go: Aegon intends to achieve net-zero carbon emissions across its defined contribution default pension fund ranges by 2050, in response to the threat posed by climate change.
The provider justified its new pledge with the urgent need to take action to address climate change.
In a survey among Aegon’s customer panel, which polled 1,375 individuals, 77 per cent agreed that climate change is an important risk to consider when investing for the future. Nearly half (45 per cent) felt more strongly and wanted to see investing for a net-zero carbon future made mandatory.
Aegon had previously announced that it would increase the environmental, social and governance exposure of its LifePath strategies, the default funds for its TargetPlan occupational schemes and master trust.
By mid-2021, more than half of LifePath assets, around £3bn, will be invested in ESG strategies, the provider stated.
Tim Orton, managing director for investment solutions at Aegon, said: “As investment providers and a responsible business, we have a large part to play in the fight against climate change.
“We believe this is not just an environmental issue, but one that is central to the future financial wellbeing of our customers. Investors are giving us a very clear message that they want to see action.
“Aegon and other providers have the power to influence the companies that they invest in and the third-party fund managers who provide investments. Businesses that fail to change, will fail.”
