Net Zero Asset Managers initiative: Target disclosure announcement – Arisaig Partners

What does your initial interim target look like?
We are committing to managing 100% of our assets in line with net zero – approximately USD 5 billion in total. We have set a baseline of 2019, with a number of targets for 2025 and 2030. By 2025 we aim to have reduced Scope 1 and 2 emissions by 9% from the baseline, increased the proportion of holdings that score highly in the TPI’s Climate Risk Management tool and focus our engagement on those that TPI does not score as highly, as well as the top emitting companies with the expectation that they align with net zero.

Can you elaborate on the methodology and scenarios you have used in setting this target?
We have used the Paris Aligned Investment Initiative’s Net Zero Investment Framework and taken a self-decarbonisation approach from a methodology perspective. We have based our targets on the Net Zero 2050 Pathway by International Energy Agency for Emerging and Developing Markets, mainly due to our focus on investing in emerging markets. This is one of the few 1.5°C pathways that provides a granular pathway for emerging markets, although does consider the entire emerging market economy rather than considering sectoral differentiation. We will continue to seek more granular pathways that are consistent with the decarbonisation of the sectors that we are predominantly invested in, which tend to be lower in carbon intensity.

What are you plans when it comes to setting a policy on coal and other fossil fuel investments?
We do not invest in companies involved in the production of fossil fuels across our funds. This is laid out clearly in our long-term investing policy on ESG integration.