Sustainable investing

Sustainable investing

We aspire to deliver sustainable returns for Clients.

Sustainable investing

We aspire to deliver sustainable returns for Clients.

To pursue our aspiration, we manage assets with material environmental, social and governance (ESG) factors embedded in our investment processes, offer our Clients sustainable investing opportunities and invest our own assets in ways that support a low-carbon and more inclusive economy.

Our work is aligned to Sustainable Development Goals #7 Affordable and Clean Energy and #13 Climate Action.

Sustainable investing: Material topic

Our world is increasingly affected by ESG issues. Climate change. Social inequality. Ethical conduct. Sustainable investing can help us deliver on our Purpose, while making a positive impact on society. Learn about how we’re directing capital to support the transition to a low-carbon economy

Goals

  • $20 billion in new sustainable investments from 2021-20251

    In progress - $17.6 billion invested since 2021, with $3.3 billion invested in 20231

  • Net-zero greenhouse gas (GHG) emissions in our investments by 2050. We set a net-zero goal across our global operations as well – refer to Climate change.

     In progress – several interim targets established or under development for our asset management businesses and for Sun Life’s general account. 

    The general account interim targets for 2030 (relative to 2019 base year) include:

    • Listed corporate bonds:
      • Minimum 40% reduction in carbon intensity relative to the baseline of 82.4 tCO2e per million dollars invested (absolute financed emissions baseline: 3,239,000 tCO2e2)
      • 65% of the Top 50 financed emitters in material sectors3 achieving net zero 'aligned' or 'aligning' (2022 baseline: 0% achieved net zero, 2% aligned, 34% aligning, 34% committed, 30% not aligned)
    • Directly managed listed equities: 50% reduction in carbon intensity relative to baseline of 59.3 tCO2e per million dollars invested (absolute financed emissions baseline: 29,000 tCO2e2)
    • Commercial real estate: 50% reduction in carbon intensity relative to baseline of 0.034 tCO2e per square metre (absolute financed emissions baseline: 126,000 tCO2e4)

    Refer to our Net Zero by 2050 report for the latest updates.

Our stories of impact

1 General account and certain third-party Clients, where relevant. Client asset values included represent a non-IFRS financial measure. More information on AUM methodology, including asset managers and criteria included in the calculation, is available upon request. Investments counted toward Sun Life's sustainable investment goal meet one or more of the criteria for investments based on ICMA Green Bond Principles, ICMA Social Bond Principles, ICMA Sustainability Bond Guidelines, GRESB Real Estate Benchmark, and/or PRI Impact Investing Market Map. Where issuers do not obtain a third-party opinion or provide an internal opinion on their issuance, our investment professionals apply judgment to assess whether the use of proceeds meets the standards set out in the ICMA principles. Assets included may not align with criteria in the Sun Life Sustainability Bond Framework. Does not include all holdings in companies that may be defined as sustainable under other taxonomies.

2 Financed emission values are calculated in alignment with the Partnership for Carbon Accounting Financials (PCAF), Part A Financed Emissions 2nd Edition (2022). Note this figure is not externally assured and may be adjusted in future publications due to changes in the organizational portfolio in addition to improvements in availability, controls, and quality of data. Values are impacted by rounding. The unit tCO2e refers to metric tonnes of carbon dioxide equivalent.

3 Material sectors include utilities (electric, multi, and gas); oil, gas, and consumable fuels; aviation; chemicals; construction materials, and mining. Alignment metric is the Paris Aligned Investment Initiative’s Net Zero Investment Framework.

4 Interim target and baseline emissions for commercial real estate associated with those of the Sun Life BGO Real Estate Equity Fund. Interim target developed using the SBTi methodology and has been submitted and accepted by the Net Zero Asset Managers initiative. Note this figure is not externally assured and may be adjusted in future publications due to changes in the organizational portfolio in addition to improvements in availability, controls, and quality of data. Values are impacted by rounding.

Refer to Sustainability Data Scope.