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Old Mutual's third Climate Report coincides with the world recording its hottest year in 2023, a stark reminder that the window to reduce carbon emissions to levels needed to achieve the 1.5°C path has almost closed. However, with sustaining, growing and protecting customers’ prosperity at the heart of everything they do, Old Mutual is playing its part to ensure these targets can be met.

If left unchecked, climate change poses a potential existential risk to businesses, communities and nations. Solutions will require more urgent action by all stakeholders in society, and Old Mutual believes that change is possible through urgent collective action.

This is why the 178-year-old financial services giant has focused on climate action within its responsible investment activities. Their commitment is grounded in science, risk management and a Just Transition to a low-carbon economy. Their support for a cleaner, healthier future includes increasing their South African portfolio investments in renewable energy to R30.7 billion in 2023, up from R26.7 billion in 2022.

Since the first bid window under the South African Renewable Energy Independent Power Producer Procurement Programme in 2012, the Future Growth Power Debt Fund supports 30 renewable energy projects in the Northern Cape, Western Cape, Eastern Cape and Free State, while Old Mutual Alternative Investments manages an additional portfolio of long-dated project finance loans extended to 26 renewable energy projects across South Africa and Africa. To date, Old Mutual and its subsidiaries have funded 39% (2.6 Gigawatts) of South Africa’s total renewable energy output (up from 2GW in 2021), placing Old Mutual among the largest investors of climate change solutions.

Old Mutual recognises climate change as a material and systemic risk and have stated that addressing this risk is central to their identity and their strategy of sustainable value creation for all stakeholders. Given the scale of their asset investment portfolio, they are able to continue to drive meaningful change by considering climate risks when making investment decisions. To achieve their short-term Net Zero targets by 2025, they have transitioned one-third of their global listed equity assets under management to track a Paris Agreement-aligned benchmark and will transition the balance over the next two years.

Old Mutual is committed to phasing down their thermal coal exposure within their South African proprietary investment holdings over time and implemented a hard exclusion to new greenfield thermal coal production facilities and power plants.

Old Mutual believes that working together is the only way to protect our planet from harm.  DM/BM

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