GOVERNANCE
FINANCIAL STATEMENTS
strategic report
In addition, a significant proportion of our investments are in lifetime mortgages, which fulfil an important social purpose by helping people in later life to release equity from their home to supplement their pension income. Below is a summary of the external initiatives/organisations we are members of that are supportive of our wider sustainability goals. Initiative/Organisation Description
Our investment approach will evolve further to adapt to changing requirements. We plan to utilise our internal and external data sources, working closely with our third-party data providers, to enhance our analysis and underlying frameworks. In the coming year, we will continue enhancing our transition plan, aligning with relevant standards and guidance, review and improve the RIF including focusing on the implementation of stewardship activities aligned with our broader RI objectives. Enhancing our approach to climate risk management is a key priority to ensure we can effectively manage these risks based on current available data and scientific evidence. Improvements and updates to our broader strategy will be continued throughout the year, including focusing on our stewardship activities, which is vital to our forward looking plan. We are efficiently concentrating our efforts on this ahead of our forthcoming ambition to continuously improve and deliver transparency by committing to apply to the UK Stewardship Code in 2024. As a team, we are continuing to grow, expanding not only the headcount of the team but the capabilities within it; the number of members in the Investment team has almost doubled since the end of 2021. You can read more about our approach to managing climate change-related risks in the next section of this report.
United Nations Principles for Responsible Investing (the “PRI”)
A signatory of the UN Principles of Responsible Investment (“UNPRI”) since September 2018, becoming the first UK asset owner to do so. Just is a member of the ABI and we aim to align our climate objectives with the ABI roadmap, actively engaging in a number of working groups. Just joined the AODC in 2022 as a signatory and working group member, supporting with developing the forward-looking strategy and direction of this initiative. Just has joined PCAF to aim to align with its methodology for calculating proxy emissions given the lack of available data in some sectors/ asset classes. Just joined this United Nations convened initiative to maintain best practices and to align our decarbonisation commitments. Just joined the NZDPU in 2022, a Glasgow financial alliance for net zero led initiative focusing on challenges and opportunities for financial institutions in relation to climate-transition data.
Association of British Insurers (“ABI”)
Asset Owners Diversity Charter (“AODC”)
Partnership for Carbon Accounting Financials (“PCAF”)
Dedicated ESG assets (IFRS valuation basis)
31 Dec 2022 £m
31 Dec 2021 £m
Net Zero Asset Owners Alliance (“NZAOA”)
287
Renewable energy – wind
334
342
Renewable energy – solar
172
135
Local authority
221
Financial Institutions Focus Group for the Net Zero Data Public Utility (“NZDPU”)
129
Social housing – private
193
42
Green buildings
21
UK Stewardship Code In line with our ambition to continuously improve and deliver transparency, we are committing to apply to become a UK Stewardship Code signatory in 2024.
Eligible under Sustainability Bond Framework
935
941
393
Social housing – public
533
120
Emerging market social finance
105
Science Based Targets Initiative (“SBTi”)
In 2022, Just signed up to the SBTi and with our formal transition to net zero plan now published, we will be presenting our target to SBTi for official validation. SBTi is a global movement of companies committed to aligning their business with the most ambitious target of the Paris Agreement to limit the global average temperature increase to 1.5ºC above pre- industrial levels.
84
Other social assets
–
Total dedicated ESG assets
1,532
1,579
13,887
Bond portfolio
15,277
11.0%
As % of total bond portfolio
10.3%
LOOKING TO THE FUTURE In November 2022, following a consultation and feedback process involving the PRA, industry firms, the ABI and HM Treasury, the government announced that it would amend certain features of the regulatory regime for insurance firms, known as Solvency II. One of the HM Treasury’s stated objectives of this review was to support insurance firms to provide long-term capital to underpin UK economic growth and productivity. The reforms, when implemented are substantial and could unlock tens of billions of pounds of investment from the sector into the UK economy, in particular decarbonising the economy, affordable and social housing, infrastructure improvements and investments to support the UK’s world class science and research capabilities.
35
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