Scottish Widows has announced that it plans to invest up to £25bn in companies that are proactively addressing climate change by 2025.

The plans include an investment of at least £1bn in firms developing climate solutions, such as green energy, sustainable agriculture, and pollution prevention.

The pension and insurance provider has already set a target of halving the carbon footprint of its investment portfolios by 2030 and aims to reach net zero on its investments by 2050.

“Today we’re announcing another major milestone in our journey to net zero by committing to invest at least £20-25bn by 2025, in companies that are proactively adapting their businesses to be less carbon-intensive or are developing climate solutions,” commented Scottish Widows head of pension investments and responsible investments, Maria Nazarova-Doyle.

“At least £1bn of that figure will be invested to fund companies developing new, sustainable ways of living and working. This huge new investment starts today and will accelerate and grow rapidly over the next four years.

“By committing to gradually reduce the overall emissions contained in our investment portfolios to net zero, we’ll be supporting and incentivising companies we invest in to decarbonise at a scale and pace to meet the 1.5°C global warming objective of the Paris Climate Agreement.

“This isn’t just about doing the right thing for the planet. Growing our customers’ savings is always our number one priority – and that means reducing the financial risk which carbon intensive companies increasingly represent, along with seizing the huge growth opportunities the green economy offers.”

The Climate Change Committee has estimated that £1.4trn of green investments will be needed between 2020 and 2050 to meet the 2050 net-zero target.

Scottish Widows stated that the scale and speed of this investment represented a “golden opportunity” for UK businesses that can adapt and innovate in addressing climate change.

Share Story: