Prudential plc has released a white paper outlining the case for a just and inclusive transition to a low-carbon economy, and its place in meeting the Paris Agreement.
The paper highlights the importance that Prudential places on ensuring that the transition to a low-carbon economy is a just and inclusive one.
It sets out how Prudential is contributing to the design of solutions, highlighting examples of pilot programmes for energy transitions currently being implemented in Indonesia, the Philippines and South Africa which could be replicated at scale.
Prudential actively considers the impact on emerging markets in all activities on climate change that it undertakes, most importantly on responsible investment. This means that the company pursues an engagement approach whereby it seeks to work actively with investee companies as they transition to a net zero business model.
Given its core business in providing health and protection, the white paper explores the link between climate and health, noting that is an area that it will look to expand on in future years.
“As a significant investor and asset owner with long-term investment horizons and liabilities, Prudential firmly believes in the need for a just and inclusive transition, in a way that actively places the considerations of emerging markets at the forefront of discussions," said Mark FitzPatrick, Group Chief Executive. "We are focusing our support on accelerating the climate transition through engagement, raising awareness on the challenges for emerging markets in the energy transition and seeking to contribute towards solutions.
“As the only way to reach net zero globally is through a just transition, this discussion is essential," he said. "It is made even more urgent as COP27 approaches. We believe a just and inclusive transition is the only way to transition to a low-carbon world.
“Countries across the world will need to overcome their own specific challenges and may not be able to decarbonise at the same pace, or via the same methods, consistent with the principles of the Paris Agreement. Only when we take these country-specific challenges into account and aim for a holistic approach towards the energy transition, can the goals of the Paris Agreement be met,” he said.
In Viet Nam, Prudential has accompanied the Vietnamese government’s efforts to reach its net-zero carbon emission target by 2050.
Phuong Tien Minh, CEO of Prudential Vietnam, said that as a substantial investor in Viet Nam’s domestic capital markets, Prudential is in a strategic position to manoeuvre in green finance.
“With a wealth of experience in green investment initiatives, we can bring what we can do in other countries to apply in Viet Nam," Minh said "At the same time, we will also “localize” those experiences in the most appropriate way to contribute to the Vietnamese market.” — VNS