SA’s third-largest insurer, Old Mutual, has committed itself to a carbon-free future by joining a UN-backed body that aims to achieve net-zero carbon emissions by 2050.
The Cape Town-based financial services group has joined the Net-Zero Asset Owner Alliance, an international grouping of 70 institutional investors representing $10.4-trillion in assets under management.
“We share the conviction of the alliance that containing the global climate crisis requires commitment and collective effort from every sector, both public and private,” CEO Iain Williamson said in a statement on Wednesday.
“We are committed to positively contributing to the global transition by decarbonising our proprietary investment holdings in a responsible and fair manner, aligned to improving real world outcomes.”
However, Old Mutual acknowledged the ubiquitous use of climate-polluting fossil fuels in SA, as well as the rest of the continent, saying it will strike a fine balance between environmental priorities and economic and social considerations.
SA generates the bulk of its electricity from coal, which is a large source of livelihoods for households.
A major challenge in this regard will be finding opportunities to minimise the potentially negative effects of the transition throughout Africa, ensuring that it is socially just and inclusive, Old Mutual said.
The company plans to release its inaugural climate report, incorporating the task force on climate-related financial disclosures, in April and will be disclosing its interim investment portfolio decarbonisation targets within the next 12 months.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.