NET ZERO ALIGNMENT
Hargreaves Lansdown Plc is committed to reaching net zero across all emissions by 2050 at the latest. We have set out interim targets too, and detail our road map to reaching these targets in our climate transition plan. Read more about our commitments below.
By “net zero”, we mean that all associated greenhouse gas emissions – that goes beyond carbon dioxide – from all of our operations and supply chains will be reduced as much as possible and any residual emissions that can’t be reduced will be balanced through offsetting.
LGIM has also committed to bringing all the assets under their management to net zero by 2050 at the latest. Within the HL Growth Fund, 71% of the assets are on a decarbonisation pathway. That means they are managed to achieve a carbon footprint reduction year-on-year, until they reach net zero by 2050. Today, these investments have less than half of the carbon intensity compared to their non-ESG equivalents. So they have a reduced environmental impact compared to investing without a decarbonisation strategy. The investments within the fund which are net zero aligned are:
HL’s Net zero commitment
In the short term we are working to progress:
- Target Scope: We commit to extending the coverage of our net-zero target to encompass an ever greater proportion of assets under management (AUM) as industry standards evolve regarding asset class emissions calculations and scope 3 emissions data availability improves.
- Scale-Up Climate Solutions Exposure: We continue to monitor our exposure to climate solutions. As data quality and coverage on climate solutions strengthens, we will evaluate setting specific targets on increasing our exposure to climate solutions within our investment portfolios.
- Voting: We are investigating the possibility of integrating climate considerations into our proxy voting process.
2050 target:
Paris Agreement Alignment: We pledge to align our efforts with the goals of the Paris Agreement, striving to limit global warming to well below 2°C above pre-industrial levels, aiming for
1.5°C
and achieve net-zero emissions no later than 2050.
2030 target:
Carbon Intensity Reduction: We aim to reduce the weighted average carbon intensity of our investments by
relative to a 2019 baseline.
Scope and Boundaries: Our current interim target covers our listed equity and corporate bond investments, approximately 90% of our total AUM. We aspire to expand this coverage as data quality and industry standards improve. The interim target focuses on Scope 1 and Scope 2 emissions from underlying companies. Scope 3 emissions are not included in the calculation as the measurement of these emissions is not yet standardised or considered reliable enough to be used in reporting. Given the importance of Scope 3 emissions in most sectors, we are evolving our approach to calculating Scope 3 emissions with the aim of including it in the future. We have chosen December 2019 as the baseline for our targets. This date aligns with the IPCC assessment, which emphasizes the imperative to reduce greenhouse gas (GHG) emissions by 43% by 2030, relative to 2019.