ICMIF member Royal London (UK) has committed to actions which it says will help protect customers’ standard of living and not just focus on product outcomes.
Barry O’Dwyer, Group Chief Executive said: “Our population is living longer and, unlike previous generations, we must take responsibility for funding our later lives ourselves. This coincides with a climate crisis that is damaging the world into which we will all retire. In combination, these ultimately put the standard of living we have come to expect in jeopardy.”
Royal London has committed to:
- Achieve Net Zero across its investment portfolio by 2050.
- Reduce its carbon equivalent emissions from the investment portfolio by 50% by 2030, while also developing climate solutions that enable customers to invest in the low carbon transition.
- Net Zero direct operational emissions by 2030.
O’Dwyer added; “We all want to spend our lives in a climate where our homes aren’t put at risk by extreme weather events and we have access to sustainable sources of food. So, customers’ money must be invested responsibly in a way that supports the changes needed to protect the planet.
“This is not the time to be passive. The biggest way Royal London can make a difference in the fight against climate change is through an active investment approach. We are engaging with the largest carbon emitters in our investment portfolio to influence their behaviours and to ensure they have ‘Just Transition’ plans in place that consider the impact the changes will have on society.”
In addition, to help customers take responsibility for funding their later lives, Royal London is championing impartial advice and the need to build financial resilience. Following the acquisition of Wealth Wizards earlier this year, the company has committed to working with financial advisers and pension schemes to broaden access to technology.
O’Dwyer said; “When it comes to advice, we believe impartial financial advice is the gold standard. With more and more people needing support, we are working with advisers to offer our technology to help them scale the provision of impartial advice and guidance so a broader range of individuals can benefit from access. We want to offer this technology to help customers whether or not advisers ultimately recommend a Royal London product.”
The company will also be calling for decisive collective action, asking regulators to consider climate change alongside product outcomes and the government to promote policies that reward those who act responsibly and do the right thing. It plans to work with others to provoke action at the scale and pace needed to overcome the challenges.
O’Dwyer stated: “We are mutually responsible for delivering a good standard of living for this and future generations.”
Royal London will feature in our next episode of our webinar series The mutual advantage which will take place on Thursday 16 September 2021 at 3pm (BST – UK time). Find out more and register here. In this series of bi-monthly webinars, ICMIF members from around the world present how they leverage their mutual/cooperative difference in order to gain competitive advantage in their market. In each case study, an ICMIF member shares how they embed the mutual/cooperative value proposition within their business strategy to create a positive differentiator from their competitors.
