Redington commits to net-zero investment advice

Redington has announced that all its default client advice going forward will be aligned with the target to reach net-zero carbon emissions by 2050.

Redington current advises on over £500bn of assets and said its commitment represents a “meaningful evolution” to the way it delivers investment advice and sets strategic asset allocations. The commitment will result in most of its clients achieving a 50 per cent reduction in the carbon emissions from their investments by 2030.

The target was announced alongside a broader seven-point climate plan, which aims to integrate sustainability across its business.

This climate plan includes helping clients set their own climate-related objectives, seeking out attractive investment opportunities in climate solutions, helping clients adopt and engage with industry recognised climate frameworks, and developing a framework to assess the effectiveness of climate-related stewardship carried out by asset managers.

Redington will also be aligning its model portfolios with the goals of the Paris Agreement, using carbon offsetting to become a net-zero business by the end of 2021, and collaborating with the wider industry to move towards a Paris-aligned sector.

Commenting on the announcement, Make My Money Matter CEO, Tony Burdon, said: “As it stands, trustees of many pension schemes rely on advice from investment consultants to make important decisions around where their fund is invested. And if that advice fails to take into account climate risk, and the global shift towards a net-zero economy, then it is likely that the scheme will too.

“Investment consultants have an invaluable role to play in changing this dynamic and by integrating net-zero advice as standard practice throughout the pension ecosystem, Redington is leading the way. Ahead of COP26 in Glasgow this year, we want the rest of the investment consulting industry to follow suit and commit to integrate net zero and sustainability into their core advice as a default.

"That way, they can act as a catalyst in driving net-zero commitments across our pensions industry, rather than as an obstacle, ensuring the savings of UK citizens are helping to build a planet that is actually worth retiring into.”

Redington CEO, Mitesh Sheth, added that addressing climate change was “no mean feat”, which was why the firm had committed to integrating sustainability across its business.

“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,” Sheth continued.

“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.

“That said, the global transition to net zero is a monumental task. It will require our continual innovation, experimentation, and the sharing of different perspectives. We can only achieve this through collaboration with our clients, asset managers, industry peers, and policy makers. Together, we can make a meaningful difference.”

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