Pension Insurance Corporation (PIC) has committed to net-zero emissions by 2050, including within its £50bn investment portfolio.

The specialist defined benefit (DB) pension insurer also set an interim target of meeting carbon neutrality under Scope one and two within its own operations by 2025, in line with the ABI’s Climate Change Roadmap.

Furthermore, PIC has joined the Net-Zero Asset Owner Alliance (AOA), a UN-convened international group of institutional investors that have committed to net zero within their portfolios by 2050.

Due to PIC’s progress in decarbonising its portfolio, it will be joining the AOA’s 2025 target setting protocol, rather than the 2030 protocol, which commits members to publishing interim carbon-reduction targets every five years.

PIC stated that its net-zero commitment will make its investment portfolio more resilient as the economy transitions to net zero and will help support international efforts to address climate change.

Commenting on the announcement, PIC CEO, Tracy Blackwell, said: “The response by government and asset owners to climate change is one of the defining issues of our age. PIC recognises the urgency of curbing global warming in line with the Paris Agreement and we are proud to join with dozens of other institutional investors through the AOA to help that effort.

“We fundamentally believe that achieving net zero is the right thing to do both for society and for our policyholders as we fulfil our purpose over the coming decades.

“Companies which actively demonstrate their commitment to sustainability are better placed to maintain secure long-term cash flows. As a long-term business we want to support the government in managing this long-term goal, benefiting our policyholders, employees, wider society and other stakeholders.”

PIC currently has £11.4bn invested in environmental, social and governance (ESG) assets and is a signatory of the United Nations’ Principles for Responsible Investment.

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