Willis Towers Watson will cut the carbon footprint for at least half of its $166 billion discretionary delegated portfolios by 2030.
The firm also pledged to reduce greenhouse gas emissions to zero for the entire discretionary delegated portfolios, outsourced to the firm, by 2050.
"We believe that the transition to net-zero should be achieved by a combination of decarbonization of existing investments and new investment in long-term climate solutions. We will use multiple 'levers' in this, including changes to risk management and asset allocation; manager selection; index design; stewardship and policy level engagement," Craig Baker, global chief investment officer, said in an emailed comment.
"We believe engagement is likely to be more effective in decarbonizing the system than exclusions alone but recognize that exclusions may be necessary at times where engagement cannot solve the problem," he said.
The transition to a low-carbon economy will significantly improve risk-adjusted returns for the firms' clients, WTW said in a news release Thursday.
