Rothesay invests £1bn in green bonds for portfolio decarbonisation

Rothesay has committed to transitioning its investment portfolio to net zero greenhouse gas emissions by 2050, framing its decarbonisation strategy around portfolio-wide and asset-class-specific targets. The insurer aims to align this transition with a maximum global temperature rise of 1.5°C, in line with the Paris Agreement.

Rothesay’s responsible investment policy sets a 20% reduction target for the carbon intensity of its publicly traded corporate debt portfolio by 2025, measured over the five years from a 2020 baseline. The firm has also set a broader objective to cut the carbon intensity of its total portfolio by 50% by 2030 versus the same 2020 baseline.

According to Rothesay, its investment portfolio comprises more than £69bn of assets under management, with 23% allocated to corporate bonds that are directly relevant to its sustainability and decarbonisation efforts. These corporate bond holdings form a key lever for meeting the near-term 2025 carbon intensity reduction target within publicly traded debt. Membership of the alliance sits alongside the firm’s own temperature-alignment and carbon intensity objectives as part of its stated approach to responsible investment.

The insurer’s decarbonisation strategy is set out in its Responsible Investment Stewardship Policy 2025, which details its net zero commitment, Paris-aligned temperature goal and interim carbon intensity targets.

Rothesay’s bonds have previously featured in ethical fixed income strategies, with the Rathbone Ethical Bond Fund reporting holdings of Rothesay Life 3.375% Tier 3 bonds maturing 2026 in its December 2020 ethical bond portfolio. This historical inclusion shows Rothesay’s own issuance appearing in third-party ethical bond mandates alongside its role as an asset owner implementing portfolio-level climate targets. Available disclosures instead focus on its net zero commitment, Paris-aligned temperature objective, carbon intensity reduction targets and portfolio composition.

The timing and details of any dedicated green bond allocation by Rothesay beyond these published commitments are not specified in the available information.

--- Sources: https://www.rothesay.com/investors https://www.rothesay.com/media/d5ylb1ne/responsible-investment-stewardship-policy-2025.pdf https://www.unepfi.org/net-zero-alliance/alliance-members/