As a long-term investor, we have a duty to consider all financially material risk factors in our investment decisions, including climate-related. We believe climate change can materially impact businesses, markets and economies globally in a number of ways, from a societal perspective as well as environmental.

We've developed a specific climate change policy, as we see climate change as a systemic and non-diversifiable concern, which has the potential to significantly affect the value of our investments across the short, medium and long-term, throughout the global economy. We also believe that opportunities can exist and be exploited for companies and assets well-positioned for the transition to a low-carbon economy.


We recognise the complexity and barriers to identifying and assessing the forward-looking financial materiality of climate-related impacts on its investments. However, we seek to assess the exposure of our investments to climate-related risks and opportunities through a range of metrics and analysis, as the tools available to measure these evolve.

Consideration will be given to the potential impacts on asset prices and return expectations across both short and longer-term time horizons, and how this could inform our decisions around strategic asset allocation and portfolio construction.

We will seek to oversee all new and existing investment arrangements in a way that takes account of climate transition and adaptation risks, as well as resilience, opportunities and inclusivity, in line with the 2015 Paris Agreement commitment to keep global temperature rise this century to well below 2oC and aim to limit the increase to 1.5oC.

Manager Expectations

We expect our external managers to understand and integrate material climate-related risks into their analysis and investment process. This includes undertaking carbon footprinting and scenario analysis, assessing asset exposure to physical risks, and engaging with issuers, where relevant for their asset class.

In monitoring the exposure and performance of our external managers, we'll review how they're managing climate-related risks and opportunities, including voting and engaging with issuers on climate-related issues, and how they're reporting to us on their actions.


We also collaborate with the wider investment community on climate change issues, as a signatory to the Principles for Responsible Investment (PRI) and as a member of the Institutional Investor Group on Climate Change (IIGCC). We seek to encourage greater climate disclosure through supporting initiatives such as the CDP and the Task Force on Climate-related Financial Disclosures (TCFD), and through engaging with companies identified by Climate Action 100+, so that exposure to climate risks (and opportunities) can be better understood.

Reporting and Engagement

We'll communicate and engage on the actions and progress that have been taken around our climate change strategy to relevant beneficiaries and stakeholders, reporting in line with TCFD guidance for asset owners.