Railpen’s Net Zero Plan: Delivering for our members

Therefore, in a world facing accelerating climate risks, fulfilling our purpose requires systemic action to confront – and help change course on – climate change.

We’ve made strong progress since our first Net Zero Plan in 2021. Over £500 million has been deployed into UK energy infrastructure, and we’ve taken a 50% stake in AGR Power, a London-based renewable energy developer. We’ve invested in an innovative private equity platform backing the “new energy economy,” and our Cambridge real estate cluster is leading in sustainable design and operation. We’re also on track to meet our interim emissions targets in 2025 and 2030. 

However, we know the challenge is growing. Global emissions continue to rise, and climate risk threatens the very foundations of our economic and social systems. Our updated Net Zero Plan re-affirms our commitment to net zero, sets out how we will manage our £34 billion portfolio to achieve net zero emissions by 2050 or sooner, and deepens our focus on real-world emissions reductions, rather than over-relying on portfolio metrics and shifting numbers on a balance sheet. Our strategic approach to climate change focuses on effective risk management and identifying opportunities. It is led by engagement, acknowledges the critical role of an enabling policy environment, and applies a systems perspective – reflecting our position as a universal asset owner.

Our strategy is built around four pillars:

• Risk Management: We integrate climate insights into investment decisions, using a balanced scorecard approach to assess both asset-specific and systemic transition and physical climate risks. These insights can then inform our allocation and engagement activities and enable us to focus on the most material risks and build resilience.
• Policy Engagement: We use our voice to help accelerate credible transition pathways, recognising the critical role of an enabling policy environment in achieving the goals of the Paris Agreement. This is grounded in our belief that public policy is a key lever for system-wide change, and long-term investors have a stake in shaping the future, not just adapting to it.
• Asset Stewardship: We engage priority assets to accelerate alignment with net zero, underpinned by our conviction in the value of effective investment stewardship and our commitment to protecting and enhancing long-term investment value.
• Portfolio Construction: We construct portfolios that support both climate transition and resilience. This includes increasing allocations to high-quality climate solutions, particularly across infrastructure, property, and private markets.  

Cutting across these four pillars are a series of key topics that run through our climate approach as thematic focuses. These include: 

• Climate policy advocacy, including expectations for investee companies aligned with the Global Standard on Responsible Climate Lobbying
• Primary capital allocation to the key mitigation and adaptation solutions we need
• Physical risk, adaptation and resilience
• Integrating climate justice and nature into our strategy and engagement

Our commitment spans both our investment portfolio and our own operations. This plan reflects our commitment to deliver for our members and aims to positively shape the communities and world they’ll retire into.