Prudential, a global financial services company, has set target for net zero by 2050 as part of its commitment to addressing climate change. The company aims to achieve a 25% reduction in the carbon emissions of its investment portfolio intensity compared to 2019 levels by 2025, while also targeting a 25% reduction in Scope 1 and 2 emissions per full-time employee from a 2016 baseline, ultimately striving to reach carbon neutrality across these emissions scopes by 2030. Prudential recognizes the potential impacts of climate change on its business, investments, operations, and responsibilities to customers. In 2022, The company's scope 1 emissions were 1,645 tCO2e, while scope 2 emissions (both market-based and location-based) were 16,938 and 19,880 tCO2e, respectively. The total scope 3 emissions (upstream activities) were 9,487 tCO2e.

The company mentions that it uses industry protocols and methodologies, such as the Partnership for Carbon Accounting Financials (PCAF) and Task Force on Climate-related Financial Disclosures (TCFD), for target setting. This suggests that Prudential is actively monitoring and managing its emissions. Prudential has taken steps to reduce its emissions and achieve its net-zero targets. The company mentions that it has aligned its climate transition plan with industry standards and guidance, including those from the Glasgow Financial Alliance for Net Zero, Transition Plan Taskforce, TCFD, and CDP. Prudential also highlights the importance of collaboration with underlying investees, suppliers, and governments to achieve climate targets in line with the Paris Agreement. The company has incorporated measures aligned with its commitment to reduce carbon emissions into its executive directors' long-term incentive plan.

In terms of governance, Prudential has established committees and working groups to oversee and manage ESG (environmental, social, and governance) issues, including climate change. These include the Group Risk Committee, Board Responsibility and Sustainability Working Group, Group Audit Committee, and Remuneration Committee. The Chief Executive has overall responsibility for implementing the company's ESG strategy, including addressing climate change risks and opportunities.

In conclusion, Prudential has set net-zero targets and is taking steps to reduce its carbon emissions and transition to a lower carbon economy. The company acknowledges the potential impacts of climate change and is committed to aligning its business activities and value proposition with the transition towards net zero. Prudential has established governance structures to oversee and manage ESG issues, including climate change, and is actively monitoring and managing its emissions using industry protocols and methodologies.

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