Prudential Financial has said it will commit to achieving net zero emissions across its operations by 2050.

Prudential says it is also is setting an interim goal to become carbon neutral by 2040. It will reduce home office operational emissions globally (Scope 1 and Scope 2) by consolidating its real estate footprint, investing in energy-efficient capital improvements for owned properties, and purchasing renewable energy, where available, and then will utilize carbon removal strategies to eliminate its remaining carbon footprint.

The firm also plans to assess Scope 3 emissions, including those related to the company’s owned assets within its $460 billion General Account portfolio. As an initial action, Prudential will begin restricting new direct investments in companies that derive 25% or more of their revenues from thermal coal.

“As a global insurer and investment manager, we understand the magnitude and urgency of climate change, and that we have a responsibility to minimize our impact. As a global insurer and investment manager, we understand the magnitude and urgency of climate change, and that we have a responsibility to minimize our impact,” said Charles Lowrey, chairman and CEO of Prudential. “This net zero commitment is an important step toward a more sustainable future for our customers, employees, investors and communities.”