Royal London says it is reducing the carbon intensity of its flagship Governed Range of equity funds.

As a result, the carbon intensity of the Governed Range, which has around 1.25m pensions customers, is expected to reduce by more than 10%. Royal London says its equity funds will increase holdings of companies with good ESG practices and cut holdings in companies with low ESG scores.

Julie Scott, Royal London’s Chief Commercial Officer, says, “This is not the time to be passive on ESG. The introduction of these ‘tilts’ to our pension range is part of investing our customers’ money responsibly to make a positive difference to the planet. We will also continue to engage with companies to promote positive change. We are committed to making investing responsibly easy. That’s why we are making this enhancement to our default pension fund range, with no extra charge to our customers.”