Pensions consultancy Broadstone claims it is the first of its peers to set carbon reduction goals that will be approved by the Science-Based Targets Initiative (SBTi).
This is a framework that oversees carbon reduction targets from businesses working across all sectors of the economy. Companies submit targets for reducing Scope 1, 2 and 3 emissions, which then have to be approved by an independent committee. Companies will then monitor and publish their progress towards meetings these goals.
Pension schemes and asset managers are increasingly disclosing the proportion of listed equity and bond holdings that are committed to SBTi. This is seen as a measure of how aligned portfolios are with the transition towards a low carbon economy, and what proportion are on track to meet net zero targets.
Broadstone says this commitment shows it is part of the “ambitious” movement towards corporate decarbonisation, in recognition of the urgency of climate action. It says the latest climate science shows it is still possible to limit global temperature rises to 1.5°C, but deep emission cuts are crucial, hence the need to halve global emissions by 2030 and reach net-zero by 2050.
These latest commitments follow the wider agenda outlined in Broadstone’s Sustainability Policy. As well as reducing carbon emissions, it aims to deliver on a range of sustainability targets covering its colleagues and the operations of the business.
Broadstone CEO Tony Gusmao says: “Broadstone’s mission is to empower people’s prosperity. To achieve this, we must ensure we can deliver sustainable outcomes for our clients, our colleagues and our environment. These commitments demonstrate our urgent desire to turn this into action.”
Broadstone investment consultant and sustainability lead Matthew Downey adds: “The near-term SBTi pledges we have made demonstrate Broadstone’s commitment to leading the pension consultancy sector in delivering sustainable change. By measuring, offsetting and cutting our emissions we can take meaningful action to reduce our impact on the society and environment we live in “