Actively placing the considerations of emerging markets at the forefront of discussions.

The transition towards a low-carbon economy is a global challenge, requiring global solutions. There is broad recognition of the need to manage this transition in a just and inclusive way, yet there is limited emphasis in mainstream discussions on exactly how difficult this process may be with regard to emerging markets.

Currently, global progress towards limiting warming in line with 1.5°C has been insufficient – and this is even more so the case within emerging markets. There are good reasons why this is the case, as emerging markets face significant challenges – higher dependence on fossil fuels combined with increased economic growth, insufficient reasons to finance the transition through clean energy and other climate solutions, as well as other unfinanced basic development needs. If, as a society, we are going to meet global climate goals and ultimately reach net zero, it is critical to ensure emerging markets are able to make this transition towards a low-carbon economy, alongside more mature or established markets. It is equally critical to ensure that this transition is managed in a just and inclusive way, leaving no one behind.

Prudential firmly believes in the need for a just and inclusive transition, in a way that actively places the considerations of emerging markets at the forefront of discussions. We are focusing our support on accelerating the clean energy transition through engagement and opportunities for financing, rather than divestment. We recognise our investments may initially be more carbon-intensive than our peers in developed markets, which may mean our pace of decarbonisation differs. Despite this, we have committed to being a net zero asset owner by 2050 and are confident we can reach this target and support a just and inclusive transition in the process.

The purpose of this paper is threefold:

1. To define the case for a just and inclusive transition, and its place in meeting the Paris Agreement;
2. Highlight the importance that Prudential places on ensuring the transition to a low-carbon economy is a just and inclusive one; and
3. Explore case studies and further actions required, from Prudential and the wider market.

As a significant investor and asset owner with long-term investment horizons and liabilities, Prudential is in a position to support the just transition within emerging markets. This paper sets forward our position largely from the asset owner perspective, acknowledging that the execution must be managed in partnership with our asset managers. We recognise that this is a process of continuous improvement. We expect both our position and execution approach to evolve whilst maintaining our objective to influence real-world impact in a just and inclusive way.

Read the Prudential plc just and inclusive transition white paper.

Related content
Insights
Responsible Investment: Financing the Transition
Read article
Insights
Heat, humidity & air pollution study: Exploring the impact of climate change on health
Read article
Insights
Prudential EOS Climate Impacts Initiative: Exploring how air quality under climate change impacts health
Read article
Insights
Empowering Aspirations: Financial Preparedness in Asia
Read article

Jackson National Life Insurance Company

Prudential

You are about to enter the website of our US affiliate Jackson National Life Insurance Company, an indirect subsidiary of Prudential plc of the United Kingdom.

Proceed to the site

Prudential

If you are looking for an affiliate of Prudential Financial, Inc, whose principal place of business is in the United States of America.

Proceed to the site

Prudential plc is an international company incorporated in the United Kingdom, and its affiliated companies constitute one of the world’s leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world, and it has been in existence for over 170 years. Prudential plc is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America, or the Prudential Assurance Company, a subsidiary of M&G plc (a company incorporated in the United Kingdom).

PPM America

Prudential

You are about to enter the website of our US affiliate PPM America, an indirect subsidiary of Prudential plc of the United Kingdom.

Proceed to the site

Prudential

If you are looking for an affiliate of Prudential Financial, Inc, whose principal place of business is in the United States of America.

Proceed to the site

Prudential plc is an international company incorporated in the United Kingdom, and its affiliated companies constitute one of the world’s leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world, and it has been in existence for over 170 years. Prudential plc is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America, or the Prudential Assurance Company, a subsidiary of M&G plc (a company incorporated in the United Kingdom).

  • Load
  • More

For M&G and Prudential UK customers and policyholders:

In October 2019, Prudential plc separated its UK operations and, as a result of this separation, Prudential UK is now owned by M&G plc. The M&G plc group is a separate, independent group and as such we are not able to help any M&G or Prudential UK customers or policyholders.

Therefore, to find the best way to make contact, please visit www.pru.co.uk/contact-us

For further information on the M&G plc group, please visit the M&G website: www.mandg.com