Royal London to reduce carbon intensity in passive equity funds in ESG push

The pension provider is introducing ‘tilts' to its £23bn collection of passive equity funds, including in its flagship ‘governed range'. The ‘tilted' equity funds will increase holdings of companies with good environmental, social and corporate governance (ESG) practices, and reduce holdings in companies with poorer practices. As a result, the carbon intensity of the equity investments in its ‘governed range', which has around 1.25 million customers' pensions invested in it, is expected to reduce by more than 10%. Royal London said the move strengthens the pension provider's commit...