The UK Government is the first G7 economy to commit to a target that brings all emissions produced by the country to ‘net zero’ by 2050. ‘Net zero’ means achieving a balance between the carbon emitted into the atmosphere and the carbon removed from it. When the amount of carbon emissions produced is cancelled out by the amount removed, the ‘net zero’ target will be achieved.
We’re committed to minimising our environmental impacts as well as determining the risks climate change presents to our business and its stakeholders.
Understanding climate change
With millions of people taking to the streets in 2019 to demand climate action and the effects of extreme weather becoming increasingly visible, it’s clear climate change has moved to the heart of public debate and become an issue businesses from all sectors need to address.
The UK’s Green Finance Strategy was launched by the Government in 2019. The strategy argues that financial risks and opportunities from climate and environmental factors need to be at the heart of financial services companies’ strategies.
The Bank of England, along with many other central banks, is increasingly interested in the financial risks, macroeconomic impacts and mitigation/adaptation policies associated with climate change. The PRA and FCA jointly established the Climate Financial Risk Forum to advance our sector’s responses to the financial risks from climate change.
The Government is therefore expecting all listed companies and large asset owners to report in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) by 2022.
The Task Force on Climate-related Financial Disclosure
The TCFD is an industry-led initiative created to develop a set of recommendations for voluntary climate-related financial disclosures. The recommendations are split across four ‘thematic areas’ that represent core elements of how organisations operate: governance, strategy, risk management, and metrics and targets.
We therefore make sure our actions and ongoing progress is included in our Annual Report.
The EU’s Non-Financial Reporting Directive (NFRD) is currently under review, aiming for further TCFD framework integration.
The UK Government expects all publicly listed companies to disclose climate risk and impact data by 2022 and is currently consulting on a ‘comply or explain’ approach to the alignment of companies’ disclosures with TCFD.
Our proposed three-year TCFD route map
The TCFD expects us to evolve our understanding of potential climate risks and opportunities over time, which means our climate disclosures will correspondingly need to adapt over time. We are already working towards our three-year plan to identify and map out our priorities, building and embedding these across PFG, and continuing to refine and integrate them into our core business processes.
Offsetting our carbon footprint
We offset our direct operational carbon footprint by financing renewable energy projects around the world to mitigate the effects our operations have on the climate.
During 2020, we offset 10,000 tonnes of CO2e, which accounted for all of PFG’s 2019 operational footprint. These emissions were offset through the purchase of Verified Carbon Standard-certified carbon credits in a wind power generation project that operates across various states in India traditionally reliant on fossil fuel generated electricity.
The project is playing a vital role in India’s shift towards a low-carbon economy by generating electricity from a renewable resource and supplying it to the state grid. It also has a range of positive impacts and benefits by providing jobs in local communities across India, improving the livelihoods of families employed by the project and reducing India’s reliance on energy from fossil fuels.
Through our investment in this project, we’re also able to contribute to four of the SDGs that relate to the development of affordable and clean energy, climate action, and decent work, economic growth, industry, innovation and infrastructure.
Reducing our carbon footprint
reduction in the total waste arising from our activities
reduction in the number of miles colleagues drive their own cars on business
reduction in our total reported greenhouse gas emissions
reduction in our total scope 1 and 2 (and associated scope 3) emissions
reduction in our air travel mileage
reduction in the tonnes of CO2e emitted through company car travel
doubled the amount of waste we recycle