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.