We must drastically reduce emissions over the next decade and work towards net zero by 2050 to prevent the most devastating effects of climate change. Our roadmap to net zero focuses on funding the transition to support a low carbon future and deliver secure returns.
We understand that managing climate risk is crucial to building resilient communities, but equally the demands of our environmental and social obligations can sometimes compete. So we invest where we see potential to drive decarbonisation while at the same time providing long-term, positive outcomes for investors and society alike.
We advocate an investment-led recovery with a greener approach to the built environment and efforts to grow climate-friendly business. At the same time, we need to manage the risks and ensure the resilience of our business and investments. We use our influence as a large investor to promote a transition to a low carbon economy. This includes supporting the goal of carbon neutrality by 2050, in line with global efforts to limit warming to 1.5°C. We have also committed to the Science Based Target initiative (SBTi).
Our decision making process needs to ensure that we integrate wider sustainability/ ESG considerations. For example, our commitment to building more social housing will inevitably impact on our carbon emissions. But our balanced and measured approach to all our commitments means they are considered holistically, in the broader context of our vision for inclusive capitalism.
To deliver real change, actions must match words. We are fully committed to our journey to net zero.
The role of cities may look different in a post-covid world and an inclusive and investment-led recovery must be focused on levelling up regions and sectors.
Our 2020 Climate Report, in line with the Task Force on Climate-related Financial Disclosures, explains our role as a business committed to the Science Based Target initiative and focuses on the need for and our contribution to a green, post-pandemic recovery.
Our Climate Risk Policy Statements set out how we plan to tackle the crisis, and focus on five key areas: