Prudential plc: Supporting a just and inclusive transition and a different approach for emerging markets
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Prudential plc (Prudential) has today launched a white paper to outline the case for a just and inclusive transition, and its place in meeting the Paris Agreement.
The paper highlights the importance that Prudential places on ensuring the transition to a low-carbon economy is a just and inclusive one, and explores case studies and further actions required, both from Prudential and the wider market.
Whilst the debate in Europe may have moved on to address the next steps in renewable energy provision, this is not the reality for the emerging markets in which Prudential operates. These markets in Asia and Africa require a considered and dynamic approach to the low-carbon transition, with greater balance and representation of their challenges. The white paper seeks to outline these challenges, as well as the scale of the opportunity, and to break down some of the barriers to move the process forward.
In setting out Prudential’s approach to a just and inclusive transition, the paper highlights how the company is raising awareness on the challenges for emerging markets in the energy transition. It sets out how Prudential is contributing to the design of solutions, highlighting examples of pilots for energy transition mechanisms currently being run in Indonesia, Philippines and South Africa, which could be replicated at scale.
Prudential actively considers the impact on emerging markets in all activities on climate change that it undertakes, most importantly on responsible investment. This means that the company pursues an engagement approach whereby it seeks to work actively with investee companies as they transition to a net zero business model.
Prudential advocates for a holistic approach to the interconnected challenges that exist for emerging markets. Given its core business in providing health and protection, the white paper explores the link between climate and health, noting that is an area that it will look to expand on in future years.
Commenting on the white paper, Mark FitzPatrick, Group Chief Executive said: “As a significant investor and asset owner with long-term investment horizons and liabilities, Prudential firmly believes in the need for a just and inclusive transition, in a way that actively places the considerations of emerging markets at the forefront of discussions. We are focusing our support on accelerating the climate transition through engagement, raising awareness on the challenges for emerging markets in the energy transition and seeking to contribute towards solutions.
“As the only way to reach net zero globally is through a just transition, this discussion is essential. It is made even more urgent as COP27 approaches. We believe a just and inclusive transition is the only way to transition to a low-carbon world. Countries across the world will need to overcome their own specific challenges and may not be able to decarbonise at the same pace, or via the same methods, consistent with the principles of the Paris Agreement. Only when we take these country-specific challenges into account and aim for a holistic approach towards the energy transition, can the goals of the Paris Agreement be met. Climate change cannot be solved in isolation, and must be addressed alongside other global challenges, such as the rising social inequality within and across countries, and the health impacts.”