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Partnership with Prudential
Introduction
Active ownership
ESG integration
Climate change
Community and people
A final word
Internal Working Group: Sectoral Decarbonisation During 2022, an internal sectoral decarbonisation working group was established, comprising members from both Prudential and Eastspring, with the aim of formulating sectoral approaches to inform investment decisions and engagement on climate change, particularly within emerging markets. Following the assessment of transition tools in the market, the working group explored a range of sectoral decarbonisation pathways and toolkits and chose the Transition Pathway Initiative (“TPI”) which allows the assessment of companies based on an International Energy Agency (“IEA”)‑aligned 1.5°C scenario, a below 2°C scenario, and a national pledges scenario. As data coverage across emerging markets can be a challenge, we commenced the development of an internal tool to complement the TPI tool. The completed tool will be made available across the organisation to investment teams within the local businesses. In conjunction, the working group conducted an assessment of sectoral engagement questions from leading industry sources. Based on this analysis, we focused on developing a list of sector-specific engagement questions for the utilities sector, designed to elicit a higher quality engagement response, and ultimately decarbonisation progress
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