PIC reduces scope 1 and 2 emissions by 16 per cent

Pension Insurance Corporation (PIC) has published its first Task Force on Climate-Related Financial Disclosures (TCFD) report, confirming that it reduced scope 1 and 2 emissions by 16 per cent in 2021.

The report sets out the firm’s climate-related disclosures, and builds on the group's commitment to be net zero across its own emissions by 2025 and across all sources of carbon emissions by 2050.

It attributed a gold, silver or bronze rating to each voluntary disclosure, with PIC achieving five gold ratings, five silver ratings, and one bronze rating in relation to the resilience of the organisation's strategy, taking into account different climate-related scenarios.

The report also emphasised that “strong progress” has been made by the group, with PIC’s offices using 100 per cent renewable energy for electricity consumption, which neutralises PIC's scope 2 emissions on a market-based approach.

It confirmed that the weighted carbon intensity of PIC's portfolio was 204 tCO2e.

In addition to this, the report highlighted a number of interim commitments made by PIC over the past year, including a commitment to reduce investment carbon intensity by 50 per cent from 2019 levels by 2030, and to decrease the average carbon intensity of investments in publicly-listed credit by 25 per cent from 2019 levels by 2025.

Furthermore, whilst the report revealed that PIC's public corporate credit portfolio's temperature alignment is currently 2.37 degrees Celsius or below, the group committed to a temperature alignment of 60 per cent of corporate exposure at 2 degrees Celsius or below

These commitments have been reflected in the group’s environmental, social and governance (ESG) strategy, including oversight of climate risk and how ESG is integrated within the PIC portfolio.

Commenting on the report, PIC CEO, Tracy Blackwell, said: “Climate change is an issue that is of real importance to us all. Reporting against TCFD, while voluntary, is in line with our purpose as we seek to manage climate risk ever more closely.

“This report brings transparency to our strategy, governance, risk management processes and key metrics for managing the impact of climate change on the business and our investment portfolio and we welcome the chance to present this report and look forward to continuing to playa a key role helping shape the debate about the transition as we all seek to manage this risk.”

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