Royal London Asset Management directs its climate stewardship towards holdings that contribute most to portfolio financed emissions, using Scope 1, 2 and 3 analysis to prioritise engagement where it can have greatest practical relevance.
The firm reported £199bn in assets under management in 2025. By 31 December 2024, the carbon footprint of its corporate fixed income and listed equity portfolios had fallen 35 percent against a 2020 baseline, supporting its 50 percent reduction target by 2030 and 2050 net zero objective.
As described to the panel, the proprietary Climate Transition Assessment is central to that operating model. It is designed for investment teams while remaining compatible with the Net Zero Investment Framework and Climate Action 100+, allowing engagement in terms familiar to issuers and other investors.
The governance architecture gives stewardship consequences beyond dialogue. Climate assessments, transition plan analysis and Transition Pathway Initiative scores inform voting recommendations, reviewed with governance specialists and portfolio managers. Where engagement stalls, issues can move through an engagement delivery group, the responsible investment committee and the senior investment committee.
Execution is also reflected in the firm's preference for engagement over broad exclusion, with thermal coal pure players identified as a limited exception and tighter mandate-specific approaches where clients require them. This preserves fiduciary flexibility while addressing transition, stranded-asset, policy, technology and demand risks.
Royal London Asset Management has broadened its stewardship agenda through public policy advocacy, a dedicated systemic stewardship role created in 2024, six-monthly client reporting, and work on just transition, adaptation, nature and private markets. The model is disciplined, transparent and appropriately cautious in a volatile policy and data environment. The Capital Finance International (CFI.co) Judging Panel congratulates Royal London Asset Management on winning the Leader in Net Zero Stewardship 2026 Award (Europe).