Slide 1: Our Plan to Reach Our Net Zero Ambition
OUR PLAN TO REACH OUR NET ZERO AMBITION SEPTEMBER 2025
Slide 2: Contents
CONTENTS 3 MESSAGE FROM THE CEO 6 OUR PLAN TO REACH NET ZERO 7 OUR PATHWAY TO NET ZERO 12 EMBEDDING THE TRANSITION 17 OUR NET ZERO AMBITIONS 22 REDUCING EMISSIONS FROM OUR INVESTMENTS 38 REDUCING EMISSIONS FROM OUR OPERATIONS 44 ACTION THROUGH COLLABORATION 49 TRACKING OUR PROGRESS 52 OUR PLAN TO RE
Slide 3: Message from the CEO: Our First Climate Transition Plan
MESSAGE FROM THE CEO OUR FIRST CLIMATE TRANSITION PLAN We continue to believe that as part of the wider As an insurer and provider of financial products, transition to a net zero society and economy, thinking about the long term comes naturally becoming a more sustainable business and net zero to us
Slide 4: Embedding Sustainability into Our Strategy
MESSAGE FROM THE CEO EMBEDDING SUSTAINABILITY INTO OUR STRATEGY Our sustainability strategy underpins our three strategic objectives and is built on our commitments to: 1 2 3 • Support a sustainable future • Help to create a fairer world • Build a sustainable Chesnara We have adapted our sustainabil
Slide 5: Taking Responsibility to Reach Net Zero
MESSAGE FROM THE CEO TAKING RESPONSIBILITY TO REACH NET ZERO Our plan is built on our short- and long-term aims and ambitions. a spirit of collaboration. Engaging with other organisations and Navigating these challenges, we will continue to protect what We know achieving our full ambition will rely
Slide 6: Our Plan to Reach Net Zero
OUR PLAN TO REACH NET ZERO At Chesnara, we are committed to becoming Our impact Our ambitions Key actions Core objectives a sustainable business that balances the needs Investments • Net zero by 2050 • Engage asset managers and investee companies to of risk, return and impact. Over 99.9% of our emis
Slide 7: Our Pathway to Net Zero
OUR PATHWAY TO NET ZERO As an insurer and provider of financial products, we are naturally focused on the long term. Climate change presents both risks and opportunities for our business, our customers and the wider economy. This plan sets out how we intend to embed climate considerations across our
Slide 8: Who We Are
OUR PATHWAY TO NET ZERO WHO WE ARE We are a FTSE 250 European life and pensions consolidator with A growing business We have also been developing our procedures and approach to shares publicly traded on the London Stock Exchange. As an acquisitive business, the shape of our business and rebaselining
Slide 9: Contributing to Real World Change
OUR PATHWAY TO NET ZERO CONTRIBUTING TO REAL WORLD CHANGE Rising temperatures, more frequent extreme weather events, and Helping to manage the risks and opportunities associated with the increasing economic losses are clear signs that the global economy assets that we manage and administer is a crit
Slide 10: Three Objectives to Achieve Net Zero
OUR PATHWAY TO NET ZERO THREE OBJECTIVES TO ACHIEVE NET ZERO Our role is to contribute to the change necessary ALIGNING OUR PORTFOLIO DRIVING CHANGE REDUCING OUR to achieve net zero by directing capital, engaging WITH NET ZERO THROUGH ENGAGEMENT OPERATIONAL FOOTPRINT constructively, and building res
Slide 11: NZIF 2.0 Underpins Our Plans
OUR PATHWAY TO NET ZERO NZIF 2.0 UNDERPINS OUR PLANS Developed by the Institutional Investors Group on Climate Our alignment with NZIF 2.0 covers the core action points outlined We are closely monitoring developments in the field Change (IIGCC), Net Zero Investment Framework (NZIF) in the framework,
Slide 12: Embedding the Transition
EMBEDDING THE TRANSITION We are embedding climate considerations into our business, including our policies and frameworks. Oversight is provided by the Chesnara plc Board, Chesnara plc Audit & Risk Committee, and Group Sustainability Committee, supported by a dedicated Transition Plan Steering Group
Slide 13: Oversight of Our Transition
EMBEDDING THE TRANSITION OVERSIGHT OF OUR TRANSITION The dedicated governance structure consists of the Group across the Group, interfacing with the Board, its committees, wider Sustainability Committee (GSC), a Transition Plan Steering Group executive and forums. The GSC has been integral in overse
Slide 14: Our Governance Framework Supports Our Transition
EMBEDDING THE TRANSITION OUR GOVERNANCE FRAMEWORK SUPPORTS OUR TRANSITION CHESNARA PLC BOARD CHESNARA PLC REMUNERATION COMMITTEE CHESNARA PLC BOARD The Board defines the Group’s purpose, values and strategy, The role of the Remuneration Committee includes ensuring that the including sustainability a
Slide 15: Our Governance Framework Supports Our Transition
EMBEDDING THE TRANSITION OUR GOVERNANCE FRAMEWORK SUPPORTS OUR TRANSITION GROUP SUSTAINABILITY COMMITTEE (GSC) TRANSITION PLAN STEERING GROUP (TPSG) CHESNARA PLC BOARD The Group Sustainability Committee oversees the progress of our The TPSG, which consists of management from across the Group, sustai
Slide 16: Climate Risk Management Is Integrated into Our Strategy
EMBEDDING THE TRANSITION CLIMATE RISK MANAGEMENT IS INTEGRATED INTO OUR STRATEGY Our Own Risk and Solvency Assessment MSCI Climate Risk Model, which incorporates We manage climate-related risks and In 2024, we identified four material (ORSA) process, conducted annually in compliance pathways develop
Slide 17: Our Net Zero Ambitions
OUR NET ZERO AMBITIONS Our net zero ambitions include a 50% reduction in scope 1 and 2 emissions intensity by 2030 for listed equity and corporate fixed income investments we can influence or control, and an ambition to invest £125 million of shareholder funds in climate solutions by the same year.
Slide 18: Our Ambitions at a Glance
OUR NET ZERO AMBITIONS OUR AMBITIONS AT A GLANCE We will continue to identify and communicate ACTIVITY SHARE4 TO DATE 2030 2050 further interim ambitions as we progress. Those currently set are: Investments 99.93% 13% in scope 1 & 2 emissions intensity compared to 50% in scope 1 & 2 emissions for ou
Slide 19: We Developed Our Ambitions Using NZIF 2.0
OUR NET ZERO AMBITIONS WE DEVELOPED OUR AMBITIONS USING NZIF 2.0 Our ambitions are aligned with NZIF 2.0, and they guide our actions across key dimensions of portfolio management, stewardship, CLIMATE SOLUTIONS INVESTMENT INVESTMENT DECARBONISATION and operational impact. While we recognise that met
Slide 20: We Are Committed to Decarbonising
OUR NET ZERO AMBITIONS WE ARE COMMITTED TO DECARBONISING Our commitment to decarbonisation Our approach and strategy ensure that progress toward our climate Impact on investment decision making We are committed to aligning our investment and operational strategy goals is aligned with and integrated
Slide 21: Measuring, Tracking & Reporting Progress
OUR NET ZERO AMBITIONS MEASURING, TRACKING & REPORTING PROGRESS Assessing our fair share contribution These are market-leading tools; however, due to the current maturity of A fair share contribution means establishing an approach that data, processes, and methodologies, these calculations and platf
Slide 22: Reducing Emissions from Our Investments
REDUCING EMISSIONS FROM OUR INVESTMENTS The vast majority of our emissions are linked to the companies we and our customers invest in. Our focus remains on balancing risk, return and impact in the best interests of our customers. We are working with asset managers and investee companies to support c
Slide 23: We Manage and Administer £14 Billion of Assets
REDUCING EMISSIONS FROM OUR INVESTMENTS WE MANAGE AND ADMINISTER £14 BILLION OF ASSETS 1 Our investment approach is centred around Our business Divisional overview delivering financial security to customers while Our management and administration of assets ensuring that the capital we manage is is s
Slide 24: The Control Over Our Investments Dictates How We Will Decarbonise
REDUCING EMISSIONS FROM OUR INVESTMENTS THE CONTROL OVER OUR INVESTMENTS DICTATES HOW WE WILL DECARBONISE Scope of portfolio decarbonisation ambition Degree of control We have different levels of control over the assets that we look after Our net zero ambition covers all financed emissions by 2050.
Slide 25: Investments Generate 99.9% of Our Emissions
REDUCING EMISSIONS FROM OUR INVESTMENTS INVESTMENTS GENERATE 99.9% OF OUR EMISSIONS Financed emissions snapshot We recognise that the emissions linked to our investment portfolio represent our most material source of climate impact. Over 99.9% of our 2024 emissions were generated by the companies in
Slide 26: We Have Started to Reduce Our Financed Emissions
REDUCING EMISSIONS FROM OUR INVESTMENTS WE HAVE STARTED TO REDUCE OUR FINANCED EMISSIONS During 2024, we made progress toward our 2050 Where there is no current PCAF method for In such cases where we determine it is necessary ambitions. For the asset classes where emissions 2023 is the baseline year
Slide 27: Increasing Assets in Scope of Our Ambitions
REDUCING EMISSIONS FROM OUR INVESTMENTS INCREASING ASSETS IN SCOPE OF OUR AMBITIONS Scope and timeline Our ambition for 2030 focuses on scope 1 and 2 emissions from listed equity and corporate fixed income assets where we can influence or control investment decisions. This is aligned with science-ba
Slide 28: Ambition Growth Depends on Asset Control
REDUCING EMISSIONS FROM OUR INVESTMENTS AMBITION GROWTH DEPENDS ON ASSET CONTROL Portfolio decarbonisation ambition asset New asset classes introduced by: coverage expansion roadmap to 2050 This represents our plan to expand the assets 2040 PCAF (all asset classes included within our ambitions. The
Slide 29: We Will Engage to Support Our Decarbonisation
REDUCING EMISSIONS FROM OUR INVESTMENTS WE WILL ENGAGE TO SUPPORT OUR DECARBONISATION Asset class alignment targets At present, only listed equity and corporate fixed income are We have adopted a two-tiered approach to asset class alignment, in Engagement threshold These recognise that not all inclu
Slide 30: Strategy Supported by Governance, Analysis & Reporting
REDUCING EMISSIONS FROM OUR INVESTMENTS STRATEGY SUPPORTED BY GOVERNANCE, ANALYSIS & REPORTING High-level net zero investment strategy Proactively allocate capital to opportunities that drive INVEST Our net zero investment strategy is built around three pillars: innovation, decarbonisation, and alig
Slide 31: Applying Our Strategy to Invest, Engage & Divest
REDUCING EMISSIONS FROM OUR INVESTMENTS APPLYING OUR STRATEGY TO INVEST, ENGAGE & DIVEST Decarbonisation levers Pillar Description Decarbonisation levers The actions we take under each pillar are tailored to the investment structure and characteristics of the assets we hold. This includes Directing
Slide 32: Climate Is Included in Our Fund Selection Principles
REDUCING EMISSIONS FROM OUR INVESTMENTS CLIMATE IS INCLUDED IN OUR FUND SELECTION PRINCIPLES INVEST CASE STUDY: MOVESTIC’S PRODUCT TRANSITION STRATEGY We are strengthening our approach to investment decision making. We are looking to prioritise funds and strategies that In 2024, Movestic Fonder expa
Slide 33: We Will Increase Our Investments in Climate Solutions
REDUCING EMISSIONS FROM OUR INVESTMENTS WE WILL INCREASE OUR INVESTMENTS IN CLIMATE SOLUTIONS Exclusion and screening approach for shareholder assets Supporting climate solutions To complement our positive selection approach, we have introduced In addition to reducing exposure to high-carbon assets,
Slide 34: Engagement with Asset Managers Is Crucial
REDUCING EMISSIONS FROM OUR INVESTMENTS ENGAGEMENT WITH ASSET MANAGERS IS CRUCIAL ENGAGE Engagement with asset managers • climate-related voting policies and practices that align with the A fundamental part of our net zero strategy is engaging with Paris Agreement our external asset managers to ensu
Slide 35: Using Voting and Engagement to Effect Change
REDUCING EMISSIONS FROM OUR INVESTMENTS USING VOTING AND ENGAGEMENT TO EFFECT CHANGE Voting expectations for asset managers Recognising our relative size and therefore influence of our holding, One important aspect of our oversight is how asset managers where appropriate we will prioritise engagemen
Slide 36: We Will Be Proportionate, Transparent and Continuously Improve
REDUCING EMISSIONS FROM OUR INVESTMENTS WE WILL BE PROPORTIONATE, TRANSPARENT AND CONTINUOUSLY IMPROVE DIVEST Divestment principles for shareholder assets Planning assumptions and considerations Divestment serves as a mechanism to uphold our exclusion We recognise that some of the steps outlined may
Slide 37: Our Plans Will Develop and Grow
REDUCING EMISSIONS FROM OUR INVESTMENTS OUR PLANS WILL DEVELOP AND GROW Evolving our approach This review cycle is designed to ensure that our strategy This inaugural transition plan builds on the work we have remains relevant and forward-looking as climate science, done to date and represents our f
Slide 38: Reducing Emissions from Our Operations
REDUCING EMISSIONS FROM OUR OPERATIONS Reducing emissions from our operations is an important part of our transition. While these emissions are small compared to those from our investments, reducing them reflects our commitment to lead by example. We are improving energy efficiency across our office
Slide 39: Our Operational Emissions Are Dominated by Our Supply Chain
REDUCING EMISSIONS FROM OUR OPERATIONS OUR OPERATIONAL EMISSIONS ARE DOMINATED BY OUR SUPPLY CHAIN Though small in comparison to our financed We report annually on our scope 1, 2, and Our 2024 operational emissions emissions, reducing the emissions of our operations relevant scope 3 emissions, using
Slide 40: We Will Focus on Areas of Biggest Impact
REDUCING EMISSIONS FROM OUR OPERATIONS WE WILL FOCUS ON AREAS OF BIGGEST IMPACT Operational decarbonisation ambitions Scope 1 and 2 Scope 3 We have set interim ambitions to help steer our Purchased goods and services Business travel All other relevant categories efforts and deliver against our longe
Slide 41: We Will Reduce, Improve and Engage
REDUCING EMISSIONS FROM OUR OPERATIONS WE WILL REDUCE, IMPROVE AND ENGAGE Decarbonisation levers Emissions Lever Actions we will take To meet our ambitions we will focus on three strategic levers to reflect our systematic approach • Conduct an assessment of our Netherlands premises to understand the
Slide 42: Our Actions Depend on the Type of Emissions We Are Targeting
REDUCING EMISSIONS FROM OUR OPERATIONS OUR ACTIONS ARE DEPENDENT ON THE TYPE OF EMISSIONS WE ARE TARGETING SCOPE 1 AND 2: OWN OPERATIONS SCOPE 3: BUSINESS TRAVEL SCOPE 3: PURCHASED GOODS AND SERVICES We aim to reduce the emissions we generate from our own As a business that operates across multiple
Slide 43: Working in Partnership to Tackle Residual Emissions
REDUCING EMISSIONS FROM OUR OPERATIONS WORKING IN PARTNERSHIP TO TACKLE RESIDUAL EMISSIONS SCOPE 3: REMAINING CATEGORIES PRIORITISING NATURE-BASED PARTNERSHIPS Beyond our business travel and supply chain To date, Chesnara has supported both carbon emissions, we are not setting reduction aims or remo
Slide 44: Action Through Collaboration
ACTION THROUGH COLLABORATION We recognise that our ability to deliver on our climate ambitions depends on broader system change. Many of the conditions that shape our transition are outside our direct control. That is why we are engaging with asset managers, suppliers, policymakers, industry bodies
Slide 45: Our Plans Are Dependent on External Factors
ACTION THROUGH COLL ABORATION OUR PLANS ARE DEPENDENT ON EXTERNAL FACTORS We are committed to playing our part in the We rely on clear and stable policy frameworks to Dependency What it means for us transition to a net zero economy. That means setting guide investment decisions and support credible
Slide 46: Bringing Stakeholders on Our Journey
ACTION THROUGH COLL ABORATION BRINGING STAKEHOLDERS ON OUR JOURNEY Addressing the external dependencies that shape our climate Our key stakeholders strategy requires engagement beyond our own operations Understanding who our key stakeholders are, and how and investment activities. Many of the condit
Slide 47: Engaging Our Stakeholders
ACTION THROUGH COLL ABORATION ENGAGING OUR STAKEHOLDERS Customers Data providers We believe that the work that we are doing to decarbonise our To improve the coverage and quality of our climate and ESG data, investments will help to reduce our customers’ exposure to the we actively engage with our k
Slide 48: Engaging Our Stakeholders
ACTION THROUGH COLL ABORATION ENGAGING OUR STAKEHOLDERS Trade and industry organisations We are a member of the industry organisations shown to the right Being members of, and engaging collaboratively with, industry bodies and participate actively to the extent our resources allow us to. We are memb
Slide 49: Tracking Our Progress
TRACKING OUR PROGRESS We are committed to transparent reporting and continuous improvement. We track progress across our investments, operations and supply chain using a suite of climate metrics aligned with recognised standards. These metrics help us evaluate alignment with our ambitions, identify
Slide 50: Key Metrics to Track Our Progress
TRACKING OUR PROGRESS KEY METRICS TO TRACK OUR PROGRESS We track progress on our net zero strategy through Financed emissions metrics a clear set of metrics across three key areas: our investment portfolio; our own operations; and our Metric Unit Methodology Overview Performance supply chain. These
Slide 51: Key Metrics to Track Our Progress
TRACKING OUR PROGRESS KEY METRICS TO TRACK OUR PROGRESS Own operational emissions metrics Metric Unit Methodology Overview Performance 2023 2024 Movement Scope 1, 2 (location-based), and tCO2e GHG Protocol Measures scope 1 and 2 and selected scope 3 4,961 3,718 (25%) relevant scope 3 absolute emissi
Slide 52: Our Plan to Reach Our Net Zero Ambition
OUR PLAN TO REACH OUR NET ZERO AMBITION CHESNARA CLIMATE TRANSITION PL AN 52
Slide 53: Our Plan to Reach Our Net Zero Ambition
OUR PLAN TO REACH OUR NET ZERO AMBITION 1 MAXIMISE THE VALUE FROM EXISTING BUSINESS 2 ACQUIRE LIFE AND PENSION BUSINESSES 3 ENHANCE VALUE THROUGH PROFITABLE NEW BUSINESS BECOMING A SUSTAINABLE CHESNARA SUPPORT A SUSTAINABLE FUTURE HELP TO CREATE A FAIRER WORLD BUILD A SUSTAINABLE CHESNARA DO NO HARM
Slide 54: Appendices
APPENDICES CHESNARA CLIMATE TRANSITION PL AN 54
Slide 55: NZIF 2.0 Core Requirements Mapping
APPENDICES NZIF 2.0 CORE REQUIREMENTS MAPPING About IIGCC’s NZIF 2.0 NZIF 2.0 area Description Our plan NZIF 2.0 offers guidance through a set of ‘core action points’ and ‘advanced action points’ across key areas: governance and strategy; Governance and strategy Establishing the basis, legitimacy, a
Slide 56: Glossary
APPENDICES GLOSSARY Absolute emissions Carbon offsetting ESG The greenhouse gas emissions associated with an asset class The action or process of compensating for carbon dioxide emissions, Environmental, social, and governance. This term is commonly used or portfolio, expressed in tons CO2e. arising
Slide 57: Glossary
APPENDICES GLOSSARY International Investor Group on Climate Change (IIGCC) Operational carbon footprint Scope 3 emissions European membership body for institutional investor action on climate The emissions from the operations we directly control, Scope 3 includes all other indirect emissions that oc
Slide 58: MSCI Disclaimer, Cautionary Statement and Forward-Looking Statements
APPENDICES MSCI DISCLAIMER, CAUTIONARY STATEMENT AND FORWARD-LOOKING STATEMENTS MSCI disclaimer does not comply with a Supplier’s terms, a Supplier may enforce such terms governments and regulatory authorities, the availability of accurate, reliable and Certain information contained herein (the ‘Inf
Slide 59: Get in Touch
GET IN TOUCH If you have any questions on anything contained in this report, please contact Andy Meek, our Group Head of Sustainability, at sustainability@chesnara.co.uk Or if you want to read more about what we do and how we do it, visit www.chesnara.co.uk and sustainability information.