Royal London, the UK’s largest mutual insurance company, has embarked on a transformative journey towards sustainability, deeply rooted in its organisational purpose. Specialising in pensions, protections, life insurance, critical illness, income protection, and investments, the company’s core business revolves around protection and pension savings, supported by its substantial asset management arm.
The realisation of the need for a sustainability strategy emerged from a profound understanding of the company’s purpose. The mutual model of Royal London, where customers are seen not just as owners but as custodians for future generations, inherently supports sustainable practices. This model fosters a sense of responsibility towards maintaining and passing on a healthy and thriving organisation.
Royal London’s journey towards clarity in purpose began with extensive internal engagement. Over 2,500 colleagues across the UK and Ireland participated in purpose workshops and pop-up cafes, contributing to the formulation of the company’s purpose statement: “Protecting today, investing in tomorrow. Together we are mutually responsible.” This statement encapsulates Royal London’s commitment to current and future generations, emphasising both immediate protection and long-term sustainable investment.
Royal London’s approach to sustainability is structured around three pillars:
- Building Financial Resilience: A key aspect of their work, focusing on helping customers build the necessary capital for a secure retirement and protecting them from life’s unexpected shocks.
- Commitment to a Sustainable World: This involves guiding customers to not only build capital but also invest in a world they would like to retire into, reinforcing the mutual responsibility towards sustainable practices.
- Strengthening the Mutual Choice: This pillar highlights the responsibility of managing and growing mutual capital so that future generations can benefit from it, just like the past generations have.
The company has also established a comprehensive Responsible Investment and Climate Change programme. This programme sets out commitments and strategies to reduce CO2 emissions in operations and investments. Engagement with external stakeholders and advocacy for governmental actions are also key components of this initiative.
Royal London’s approach to achieving its purpose is stratified into three ‘horizons’:
- Horizon One: Focuses on continuous improvement in day-to-day operations.
- Horizon Two: Targets the development of capabilities needed for long-term goals.
- Horizon Three: Acts as it’s ‘North Star’, aspirational outcomes that guide the company’s direction.
The company acknowledges the challenges posed by external events, like the invasion of Ukraine, which have caused fluctuations in the market and impacted sustainable investments. In response, Royal London emphasises the importance of resilience and maintaining focus on long-term sustainability goals.
Royal London’s sustainability journey is marked by extensive internal and customer engagement. Initiatives like the eco champs network and sustainability learning programmes for colleagues are instrumental in embedding sustainability into the company’s ethos. Moreover, customer engagement focuses on explaining the importance of sustainable investment strategies over exclusionary tactics.
Royal London’s journey toward sustainability is a testament to its commitment to mutual responsibility and its role as a custodian for future generations. By intertwining its purpose with sustainable practices, the company not only secures its own future but also contributes meaningfully to the global sustainability agenda.
