Responsible Investment Report 2022

73

Climate change

Introduction

Active ownership

ESG integration

Partnership with Prudential

Community and people

A final word

to physical and transition climate change risks and ITR as an indicator of the level of temperature alignment of our investment portfolio. We will continue to develop our internal understanding of these metrics, taking into consideration that external disclosures will be enhanced when identified challenges are appropriately addressed or can be mitigated. In addition, whilst progress has been made, we recognise that in order to arrive at a future long-term target, a keen understanding of the drivers of material climate risk in each sector and across different geographies is required, along with an improved understanding of the extent to which these forward-looking metrics work as proxies for climate risk of our portfolios. We believe this will be key in deriving insight for managing climate risk over the long-term.

In our capacity as the asset management arm, Eastspring has supported Prudential in its efforts at transparent reporting and in initiatives for improving the wider Group’s response towards climate change risk.

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