Transitioning to a low carbon economy
The next five to ten years will see transformational change in the energy sector as technological advances and innovation deliver clean, affordable and reliable heat, power and transportation. We believe that electric vehicles, energy storage, smart grids and connected devices will optimise the use of low cost renewable power, while improvements in the energy efficiency of our buildings and local generation will reduce dependence on large expensive fossil-fuel power stations.
We are committed to investing in clean energy, with a focus on low cost generation technologies such as wind and solar. Legal & General Capital is also looking to new technologies that are expected to bring about a significant change in the ways we will consume and pay for power in the future.
In the five years from 2017 we set ourselves targets to:
- Reduce the number of carbon intensive companies that we own in our shareholder funds and replace them with less carbon intensive companies. From 2017 onwards we are publishing the carbon intensity of our own balance sheet.
- Deliver insurance solutions to support low cost energy efficient homes.
- Engage with investee companies globally to build strong governance and strategies that are resilient and adaptive to changing policy and technology. In 2017 we aimed to engage with at least 84 companies as part of the Climate Impact Pledge.
- Help clients understand better the risk and opportunities created by the low carbon transition through education and then provide investment solutions to finance and benefit from the low carbon transition.
- Support the development of key technologies with the potential to accelerate the transition to a low carbon economy.
- Develop low carbon, energy efficient homes in our housing business.
Provide capital for up to 5% of the UK clean energy market, enough to sustainably power 5% of all UK households by 2021.