2023 TCFD
Report
Climate-related Financial Disclosures for St. James's Place
Home
Our introduction
Our governance
Our strategy
Our risk
management
Our metrics and targets
Our conclusion
Glossary
and appendix
Welcome to our 2023 TCFD report
Welcome to the St. James's Place Group's Climate-related Financial Disclosures report, which explains the action we are taking on climate change and its financial impacts to our business. This is our home page, where you can navigate to all sections of our report by selecting the desired heading.
Our introduction | Our governance | Our strategy | ||
Here you will find our | This section covers how | This section covers | ||
Group Chief Executive's | we govern climate- | how our approach | ||
Statement, a high-level | related risks and | has evolved, | ||
view of who we are, | opportunities, our | progress against | ||
our approach to | accountable leaders | our commitments, | ||
responsible business, | and our subsidiaries' | our use of scenario | ||
and a summary of the | approach to TCFD | analysis and our | ||
disclosures in this | reporting. | strategic resilience. | ||
report. | ||||
Pages 02 to 08 | Pages 09 to 12 | Pages 13 to 28 | ||
Our risk | Our metrics | Our conclusion | ||
management | and targets | Closing remarks from | ||
Here you will find our | Outlined here is our | our Chief Executive | ||
climate-related risks | progress against our | Officer. | ||
and opportunities, the | targets, and our | |||
timeframe over which | operational and | |||
we consider them, their | investment proposition | |||
significance to our | metrics. | |||
business, and an | ||||
overview of our risk | ||||
management and | ||||
control framework. | ||||
Pages 29 to 42 | Pages 43 to 49 | Pages 50 to 51 | ||
GlossaryAppendix
Pages 53 to 55 | Page 56 to 58 |
St. James's Place TCFD Report 2023 | 01 |
Home | Our introduction | Our governance | Our strategy | Our risk | Our metrics | Our conclusion | Glossary |
management | and targets | and appendix | |||||
Our introduction
Our approach to TCFD reporting | 03 | |
Group Chief Executive Officer's Statement | 04 | |
How we do business | 05 | |
Our approach to responsible business | 06 | |
Our climate commitments | 07 | |
Summary of disclosures | 08 |
Accelerating action on climate change is a core part of our Responsible Business approach. We are committed to our transition to net zero and know that
the carbon reduction actions we take today will have a multiplying effect over time.
Maria Spooner, Divisional Director, Responsible Business
St. James's Place TCFD Report 2023 | 02 |
Home | Our introduction | Our governance | Our strategy | Our risk | Our metrics | Our conclusion | Glossary |
management | and targets | and appendix | |||||
Our approach to TCFD reporting
St. James's Place is a business made up of multiple individual entities.
This report is for St. James's Place plc (SJP), the Group's Parent Company, together with two of its subsidiaries, St. James's Place UK plc (SJPUK) and St. James's Place Unit Trust Group Limited (SJPUTG):
St. James's Place UK plc (SJPUK)
A life insurance company regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA);
St. James's Place Unit Trust Group Limited (SJPUTG)
A unit trust manager regulated by the FCA.
Whilst responsibility for corporate governance rests with the boards of each individual company, the overall approach to environmental governance is determined at a Group level in line with our Group climate strategy.
Recognising that our approach to environmental matters is applied consistently across the Group, we have chosen to report for all Group companies in a single TCFD report. To ensure we meet the individual requirements for each company, where differences exist for specific companies we have highlighted these throughout this Group report by naming the subsidiary within the text: for example on page 34 within our Risk section.
St. James's Place TCFD Report 2023 | 03 |
Home | Our introduction | Our governance |
Group Chief Executive Officer's statement
Welcome to the St. James's Place Group's Climate-related Financial Disclosures report, which explains how we are taking action on climate change.
2023 was the warmest year on record and the global mean temperature increase has now risen to 1.3°C above the pre- industrial average. A series of extreme global weather events, including Canadian wildfires, heatwaves in Europe, droughts in Italy and extreme rainfall in Libya all served as unfortunate reminders of the devastating effects of our changing climate.
Research shows that progress towards 1.5°C-aligned targets isn't happening at the pace and scale necessary, and that urgent action is needed to protect the world's most vulnerable ecosystems and communities. At SJP, we recognise that we have both the responsibility to take appropriate action and the opportunity to use our voice to influence and collaborate with our stakeholders to pursue long-term positive change.
We recognise the need to accelerate climate action, and the role that businesses and individuals can play in driving change. That's why, this year we have intensified work on our Climate Transition Plan to help us better understand what we can do to promote a just, fair and inclusive transition to a more sustainable economy.
Behaving responsibly is a key part of our culture, challenging us in how we run our business. We know that effective and transparent disclosure can lead to real change, and we are pleased to share our fourth report on climate-related financial disclosures, aligned to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, with you.
Our strategy | Our risk | Our metrics | Our conclusion | Glossary |
management | and targets | and appendix | ||
At SJP we want to use our scale and influence to make a real change, and ensure a just and green transition to net zero.
Mark FitzPatrick, Chief Executive Officer
St. James's Place TCFD Report 2023 | 04 |
Home | Our introduction | Our governance |
How we do business
Our purpose
To give you
confidence to
create the future
you want
What we do
We work in
partnership to plan,
grow and protect clients' financial futures
Our vision
To be the best place to create long-term financial security
Our strategy | Our risk | Our metrics | Our conclusion | Glossary |
management | and targets | and appendix | ||
We will get there by working together
Being a responsible business
Our culture drives our businessOur Responsible Business Framework
#1
Doing the right thing
Financial | ||||||||||||
wellbeing | ||||||||||||
#2 | Purpose | |||||||||||
Being the best version | ||||||||||||
Investing | Climate | |||||||||||
of ourselves | ||||||||||||
responsibly | change | |||||||||||
#3 | ||||||||||||
Community | ||||||||||||
Investing in long-term | ||||||||||||
relationships | impact | |||||||||||
Strategic enablers | ||||||||||||
People | Governance | |||||||||||
St. James's Place TCFD Report 2023 | 05 |
Home | Our introduction | Our governance | Our strategy | Our risk | Our metrics | Our conclusion | Glossary |
management | and targets | and appendix | |||||
Our approach to responsible business
At SJP we're committed to taking responsibility for our actions and strive to have a positive impact on our people, our communities, and our planet.
Our most material topics
Being a responsible business is core to delivering on our promise of helping our clients create the futures they want. From our work with local communities to minimising our environmental impact, we aim to make choices that promote a world that can meet the needs of everyone now, and in the future.
At SJP, we recognise that we have both the responsibility and the opportunity to use our voice as a force for good and know we can drive positive change by considering the long-term impact of our actions. This requires us to look beyond ourselves and understand the wider impact of our choices on our people, our communities, and our planet.
It means engaging with others and collaborating on solutions to the shared challenges faced by society today. Supported by a deep understanding of the topics most material to us, and the right processes and metrics that provide transparency on our progress. We know that we might not always get it right and we can't do it all, but we are committed to the journey and to making real progress.
For further information on our responsible business approach please see section 01, Our responsible business, of our Group Annual Report and Accounts.
To deliver good financial outcomes for our clients, we consider relevant environmental,
social and governance (ESG) factors throughout our investment process
Investing
responsibly
Giving back to support local communities and regeneration
Financial wellbeing
Our purpose
is to give you confidence to create the future you want
Community
impact
Enhancing financial wellbeing for our clients, our people and our communities
Climate change
Taking action on climate change
St. James's Place TCFD Report 2023 | 06 |
Home | Our introduction | Our governance | Our strategy | Our risk | Our metrics | Our conclusion | Glossary |
management | and targets | and appendix | |||||
Our climate commitments
To set our net zero targets we undertook a preliminary audit across our
In 2021 we announced SJP's net zero1 targets and we report our progress against these each year through our TCFD report.
Target 1
We'll be climate
positive2 in our
operations
by 2025
This report also focuses on the impact of climate change on our business, including how it may affect the value of the investments we make, and discloses the measures we are taking to control and reduce our impact.
These disclosures demonstrate how we assess the impacts of climate change on our business and help to promote a more informed understanding of climate-related risks and opportunities.
entire value chain to better understand our Scope 1, 2 and 3 carbon emissions. As the graph below shows, our carbon impact is dominated by our investment portfolio. Our core investment business model is to select and monitor third-party fund managers to run our investments for us, rather than directly investing ourselves. However, responsible investment is one of our core investment beliefs embedded throughout our fund manager, select, monitor, change, process and we expect all our fund managers to consider how companies approach environmental, social and governance (ESG) issues when identifying and investing in long-term resilient businesses. This, coupled with targeted engagement, enables us to use our scale and influence to reduce the emissions of our portfolio. For more detail, please see page 28.
We recognise that in order to strengthen the effectiveness of our associated engagement activities, we must demonstrate credibility and meaningful
Target 2 | Target 3 |
We'll support | Our supply |
our Partners to | chain will be |
become net | net zero |
zero by 2035 | by 2035 |
Target 4
We'll be net
zero in our
investments3
by 2050
As a part of developing our approach to meeting our commitments we are also undergoing a double materiality assessment to more comprehensively assess our impact across a broader range of climate-related areas.
This will support us in evolving our plans and prioritising our actions to maximise our effectiveness. We aim to publish our updated Climate Transition Plan by end
Q4 2024.
progress in our own business operations, in our Partnership and within our supply chain. Read more about our progress against our commitments
on page 19, and a breakdown of our Scope 1 to 3 carbon emissions on page 44.
Contributors to our 2023 carbon footprint4
Scope 1 to 3 | Scope 3 - | Investments |
- Operations | Significant contributors | 99.55% tCO2e |
- The amount of greenhouse gases produced by our activities is fully negated by a combination of emissions reduction and emissions removal.
- for SJP this involves not only offsetting carbon emissions but also taking additional steps to mitigate or sequester more greenhouse gasses than are produced through our actions.
- Equity and debt for listed corporates and real estate. This is approximately 88% of our overall assets under management (AUM).
Operations | Partnership | Supply chain | ||||||
0.08% tCO2e | ||||||||
0.11% tCO2e | 0.25% tCO2e | |||||||
(Scopes 1 to 3) | ||||||||
4 This graph approximates the Group's carbon footprint to highlight the key areas. Please see page 44 for more detail.
St. James's Place TCFD Report 2023 | 07 |
Home | Our introduction | Our governance | Our strategy | Our risk | Our metrics | Our conclusion | Glossary |
management | and targets | and appendix | |||||
Summary of disclosures
Recommendations we have carefully reviewed, and for which we recognise that further work is required
Recommendations we have made significant progress against, and which we plan to enhance our disclosure further
Recommendations we have been able to fully disclose against
We are fully consistent with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and recommended disclosures (summary below). We have also considered the TCFD's All Sector Guidance and consider SJP to be fully consistent with these.
Theme | Description | Pages | TCFD recommended disclosure | 2022 | 2023 | Our disclosure |
Governance | Disclose the organisation's | 10 to 12, | a) Describe the Board's oversight of climate-related risks and |
governance around climate- | 18 to 19, | opportunities. | |
related risks and opportunities. | and 31 | ||
b) Describe management's role in assessing and managing against our climate-related risks and opportunities.
We have provided an overview of how we govern climate-related risks and opportunities including references to training, KPIs and linked remuneration. We outline our accountable leaders and provide more context on our subsidiaries.
Strategy | Disclose the actual and potential | 07, |
impacts of climate-related | 16 to 19, | |
risks and opportunities on | 20 to 27, | |
the organisation's businesses, | and 44 | |
strategy, and financial planning | to 49 | |
where such information | ||
is material. |
- Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term.
- Describe the impact of climate-related risks and opportunities on the organisation's businesses, strategy, and financial planning.
- Describe the resilience of the organisation's strategy, taking into consideration different climate-related scenarios, including a +2°C or lower scenario.
We have considered and outlined our short-, medium- and long-termclimate-related risks and opportunities. Using this information alongside our scenario analysis, we have assessed their significance and impact on us as a business, and incorporated the outputs into our strategic planning.
Risk | Disclose how the organisation | 30 to 42 | a) Describe the organisation's processes for identifying and assessing |
management | identifies, assesses, and | climate-related risks. |
manages climate-related risks.
b) Describe the organisation's processes for managing climate-related risks.
c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation's overall risk management.
We have outlined the key processes we follow to identify, assess and manage our climate- related risks and opportunities, along with providing an overview of how we integrate this work into our risk management process.
Metrics and | Disclose the metrics and targets | 07, | a) Disclose the metrics used by the organisation to assess |
targets | used to assess and manage | 12, | climate-related risks and opportunities in line with its |
relevant climate-related risks | 32, and | strategy and risk management process. | |
and opportunities where such | 44 to 49 | ||
b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 | |||
information is material. | |||
greenhouse gas (GHG) emissions, and the related risks. |
c) Describe the targets used by the organisation to manage climate- related risks and opportunities, and performance against targets.
We have provided our operational metrics, our Scope 1, 2 and 3 GHG emissions, our progress against targets and the impact
of our investment proposition on our exposure to carbon-intensive companies.
St. James's Place TCFD Report 2023 | 08 |
Home | Our introduction | Our governance | Our strategy | Our risk | Our metrics | Our conclusion | Glossary |
management | and targets | and appendix | |||||
Our governance
Governing climate-related risks | 10 | ||
and opportunities | |||
Our accountable leaders | 11 | ||
Our subsidiaries approach to | 12 | ||
climate-related governance |
Robust governance drives accountability and transparency, which are critical success factors for sustainable growth. With good governance we enhance performance, strengthen resilience and act in the interests of all our stakeholders.
Vicki Foster, Governance Programme Director
St. James's Place TCFD Report 2023 | 09 |
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St James's Place Group plc published this content on 07 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2024 16:31:07 UTC.