(Alliance News) - Prudential PLC on Friday announced it will divest from all coal assets in its portfolio, in line with its plans to decarbonise its portfolio and meet its target of becoming "net zero" by 2050.
The London-based insurer said it will take immediate actions to work on its long-term goal, including the divestment from all businesses which derive more than 30% of income from coal, starting with all equities by the end of 2021 and fixed-income assets by the end of 2022.
Prudential's portfolio had a value of USD128 billion as at December 31, 2020.
Other actions include a 25% reduction in the carbon emissions of all shareholder and policyholder assets by 2025, and engaging with portfolio companies responsible for 65% of total emissions.
Prudential said its pledge is aligned to the Paris Agreement, which aims to hold the increase in the global average temperature to below 2 degrees Celsius above pre-industrial levels.
"As a steward of long-term capital and a protector of people's lives, we need to use our scale and expertise to drive decarbonisation at pace - and to do so in a way which is just and fully inclusive, is engaged with our stakeholders and delivers green growth which benefits everyone. Today's announcements set out how Prudential intends to play the fullest possible role in the transition to the net-zero future which is essential if global temperature rises are to be controlled," said Chief Executive Mike Wells.
Shares in Prudential were up 1.5% at 1,583.75 pence on Friday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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