SJP TCFD Product Report
The TCFD Product Report is a regulatory document produced annually, highlighting several carbon metrics for each of our funds.
What is it?
A report where we disclose climate metrics for each of our funds. It includes information such as the Carbon Footprint and Weighted Average Carbon Intensity of each fund, as well as information on how we think climate-related risks might affect a fund’s performance.
We update the report every year with data from the past 12 months to build up a picture of how the climate profile of funds is changing over time.
Why is it useful?
It helps clients understand how their funds are positioned with regards to climate change and the energy transition. Climate risk may impact investment performance over the long term. The report provides information to help clients understand how this may happen.
We use the data to identify and monitor climate risks within our investments.
If you have any questions about the report, please contact your SJP Partner. You can find more information about our responsible investment approach here.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and the value may fall as well as rise. You may get back less than the amount invested.
2025 report summary
In this year’s report, we show carbon metrics for forty of our funds. Of these, nine (up from four last year) had a higher Weighted Average Carbon Intensity than their benchmark. Four funds were considered to be ‘carbon intensive’ (up from one last year). This means they had higher carbon intensity than their respective benchmarks in two or more of the following sectors: energy, materials and/or utilities. These sectors have significantly higher emissions than others.
Much this increase came from increased exposure in select funds to three cement producing companies, whose carbon intensity also rose over the year. The impact of these changes outweighed our investment managers’ efforts to reduce the underlying emissions of investee companies across the rest of our investment holdings. This emphasises the disproportionate influence highly carbon intensive holdings can have.
What are we doing?
We acknowledge decarbonisation is a long-term challenge and that progress towards our net zero goal will not always be linear. Our investment managers make investment decisions to deliver good financial outcomes for our clients. In some cases, this may mean investing in high emitting companies. Engagement is central to our approach when this is the case.
We expect engagement with high emitting companies to be prioritised. We monitor and engage with our investment managers to ensure this is the case.
We also believe more action from governments and policymakers is vital to achieve net zero. Investors alone can’t achieve the goals of the Paris Agreement.
This is why we also monitor our investment managers’ approach to macro stewardship. How are they trying to influence wider industry, governments and policymakers to push for more movement around climate policy? Over 2026, we’ll continue to work closely with our investment managers and are exploring ways to engage directly with investee companies through industry collaborations.
We’ve set a target to achieve net zero emissions for our investments by 2050. We calculate these metrics annually, which helps us track how each fund is progressing towards this goal. Generally, we want to see Weighted Average Carbon Intensity metrics for all funds reduce over time.
Last year we included a new metric, Implied Temperature Rise, for our funds. It’s a forward-looking metric which indicates the extent to which a fund is aligned with the goals of the Paris Agreement. Most of our funds are “misaligned” or “strongly misaligned.” While the metric is an estimate, this result is common across the industry because, as things stand, the world isn’t on track to achieve the goals of the Paris Agreement. We’re expanding our engagement work which aims to ensure that our investee companies are well positioned with regards to the energy transition. We expect Implied Temperature Rise to be revised down over time as our companies decarbonise, as was the case for all the funds in the report over the course of 2025. However, more action from governments and policymakers is vital to achieve net zero.
Section 3 of the report (see page 15) includes information for each fund. We don’t calculate metrics for the following funds and have explained why on page 104.
- Diversified Assets (FAIF)
- Global Government Bond
- Global Government Inflation Linked Bond
- Global Absolute Return
- Money Market
Different metrics show us different things. They complement each other and provide a bigger picture.
Backward-looking metrics:
- Absolute Financed Emissions
- Carbon Footprint
- Weighted Average Carbon Intensity
These metrics look at what carbon emissions have been in the past. This is useful to help us identify trends i.e. whether emissions are going up or down. Although a decrease in one year doesn’t necessarily mean emissions will go down every year.
Forward-looking metrics:
We show two forward-looking metrics for each fund:
- Implied Temperature Rise
- Climate Value at Risk
Forward-looking metrics try to show what could happen in future based on what we know today. For example, based on companies in the fund today, how aligned is the fund to the Paris Agreement?
Both types of metric are useful to help us get a sense of whether our investment managers, and the companies they invest in, are moving in the right direction towards decarbonisation and net zero.
Section 4 (see page 105) of the report is a glossary with detailed information on how each metric is calculated and what can cause it to change.
Our Approach to Responsible Investment Guide is a good place to start. The responsible investment webpage also outlines our approach and includes more detailed reports.
Previous reports
Please note that these are no longer in date. Please refer to the most recent version of the report for the most up to date information.