By 2050, Prudential Financial promises to have no emissions at all
Prudential Financial, Inc.
Enhanced climate actions include a goal of reaching carbon neutrality by the year 2040 and a ban on new direct investments in thermal coal.
Prudential Financial, Inc. (NYSE: PRU) announced today that it will strive for net zero emissions across its primary domestic and international home office operations by 2050. Prudential has set an interim goal of becoming carbon neutral by 2040 to accelerate the company's longstanding commitments to mitigating the effects of climate change. These actions are consistent with the most recent climate science, which calls for limiting global warming to 1.5 degrees Celsius or less, as specified in the Paris climate agreement.
"As a global insurer and investment manager, we understand the magnitude and urgency of climate change, and we recognize that we have a responsibility to mitigate our impact,"
said Prudential Chairman and CEO Charles Lowrey.
"Our commitment to net zero is an important step toward a more sustainable future for our customers, employees, investors, and communities."
The actions announced today build on Prudential's 2019 Global Environmental Commitment, which includes operational and investment goals to combat climate change and other environmental threats.
Prudential will reduce global home office operational emissions (Scopes 1 and 2) by consolidating its real estate footprint, investing in energy-efficient capital improvements for owned properties, and purchasing renewable energy where available, and then using carbon removal strategies to eliminate its remaining carbon footprint. Home office operations for the company include owned and leased office space, data centers, and garages in the United States, Japan, and Brazil.
Prudential's next step is to evaluate Scope 3 emissions, which include those associated with the company's owned assets in its $460 billion General Account portfolio.
Prudential will restrict new direct investments in companies that derive 25% or more of their revenue from thermal coal as a first step. This limitation is part of Prudential's enhanced Responsible Investing Policy.
"Prudential is a company that is dedicated to keeping its promises. As we make meaningful progress toward addressing climate risk, we will hold ourselves accountable to these targets,"
said Rob Falzon, vice chair of Prudential and chair of the company's Steering Council on Climate Change.
"Our long-standing efforts to effectively engage with our stakeholders and provide transparency on our environmental actions underpin these carbon reduction targets."
Other recent environmental actions taken by the company include sustainable finance transactions such as the issuance of an inaugural green bond. In May 2021, PGIM Real Estate, Prudential's global investment management arm, committed to reducing operational carbon emissions from its global portfolio of managed properties to zero by 2050.
Prudential will report progress and updates on these targets in its annual ESG Report. Prudentialialesg.com has more company news and information on sustainability initiatives.