Net Zero Asset Managers initiative: Target disclosure announcement – Wellington Management

What does your initial interim target look like?
We have initially committed to manage 10.6% of our total assets under management in line with net zero – approximately USD 146 billion. We have set a baseline of 2019 and by 2030 intend to either have invested in a percentage of companies with science-based targets that is consistent with a linear increase from the baseline to 100% in 2040, or to achieve a 50% reduction in average carbon intensity.

Can you elaborate on the methodology and scenarios you have used in setting this target?
Our approach is aligned with a combination of the SBTI Guidance for Financial Institutions and the Paris Aligned Investment Initiative’s Net Zero Investment Framework. We have taken a combined approach which allows options focused on engagement and portfolio construction. Each investment team determines which approach is most consistent with their philosophy and process and implements it accordingly as the default proposed approach for clients with net zero targets. Targets are set using either a science-based pathway to 1.5°C or a 50% reduction in greenhouse gas emissions by 2030.g

How did you approach deciding what to include in scope for your initial target?
We are holding ourselves to a high standard of accountability in setting our target. The funds included are only within asset classes where there are well-established methodologies for decarbonisation and where we have approval from clients and commitment from investors to implement an objective consistent with net zero by 2050 or sooner. Current factors affecting our ability to increase our target include our business model – nearly 90% of our business is made up of separately managed and sub-advisory accounts, availability of appropriate methodologies and sufficient data, and tools for implementation. We intend to update our commitment as we reach new milestones, such as establishing an actionable climate plan for a new asset class or receiving additional client approvals and hope that we can accelerate our climate action development plans in the coming years.

What are you plans when it comes to setting a policy on coal and other fossil fuel investments?
We have a client exclusion policy in place, which was updated in October this year. It covers climate risk in relation to thermal coal extraction and power generation, and oil sands extraction, evaluating companies based on revenue thresholds, reserves and announced phase-out plans. More than 90% of our cross-border sponsored funds are covered by this policy.

Net Zero Asset Managers initiative: Target disclosure announcement – Swedbank Robur Fonder

What does your initial interim target look like?
Our interim target is 88%, which means that around USD 126 billion of our total assets are committed to be managed in line with net zero. Our baseline year is 2019, and assets are subject to a number of additional targets by 2030, including goals for Scope 1 and 2 emissions and the proportion of assets in material sectors that aligned or aligning with net zero. Our net zero timeline is an aggressive one, being set at 2040 with a 50% decarbonisation by 2030 intensity-based target. We are also tracking absolute carbon emissions to ensure that these are close to zero by 2040.

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 focused on the IEA’s NZE 2050 scenario, which we have adjusted for 2040 to generate our decarbonisation and solutions curves.

How did you approach deciding what to include in scope for your initial target?
The scope of AUM to be managed in line with net zero includes corporate bonds and equities for funds covered by our policy for responsible investments. It does not include our discretionary mandates, rate funds and alternative investments, however targets will be developed for these in the future when appropriate methodologies are available.

What are you plans when it comes to setting a policy on coal and other fossil fuel investments?
From 2021 we have adopted an aggressive exclusion policy on fossil hydrocarbon-based extraction and power generation. This has resulted in an approximate decrease of 50% in the carbon intensity of our aggregated investments in the last three years, and led to us being one of the top five large asset managers globally according to CDP and Climetrics ratings.

 

Net Zero Asset Managers initiative: Target disclosure announcement – Schroders

What does your initial interim target look like?
We have set an initial target of 60% of AUM – approximately USD 396 billion – committed to be managed in line with net zero. We have started from a baseline year of 2019 and set mid and long-term targets of 2030 and 2040 respectively. Our mid-term target of 2.19°C covers Scope 1 and 2, while our long term one is 1.5°C also includes Scope 3 as indicated by the Partnership for Carbon Accounting Financials (PCAF) timeline.

Can you elaborate on the methodology and scenario you have used in setting this target and why you’ve chosen them?
– SBTi for Financial Institutions
– IPCC AR5 1.5°C

How did you approach deciding what to include in scope for your initial target?
Currently we have included asset classes that we have been able to obtain the required data for and have developed models to measure the financed emissions and temperature alignment of these assets. Currently these include listed equities and credit, but in future as more methodologies are developed, we will be able to add to the list and increase the proportion of our assets that are included.

What are you plans when it comes to setting a policy on coal and other fossil fuel investments?
We are planning to start disclosing our investments in fossil fuel sectors and have coal exclusions for our sustainable product range. We continue to keep our fossil fuel investment policy under review.

Net Zero Asset Managers initiative: Target disclosure announcement – Aviva

What does your initial interim target look like?
Our initial target is around 70% of AUM, which equates to USD 346 billion in assets managed in line with net zero. We have set our baseline as 2019 and intend to reduce greenhouse gas (GHG) emissions 25% by 2025 and 60% by 2030. We currently include Scope 1 and 2 in our targets, where there is sufficient coverage to enable measurement of progress towards them. Access to Scope 3 data is currently not sufficient to allow for us to measure effectively against targets, but where it is available we report internally on it.

Can you elaborate on the methodology and scenario you have used in setting this target?
We have used the Net Zero Asset Owners Alliance (NZ AOA) Target Setting Protocol, which covers public equities, credit and direct real estate and based our targets on the IPCC special report on global warming scenario of 1.5°C. We have set a target of a 25% reduction by 2025, which aligns with the 50% reduction required by 2030.

How did you approach deciding what to include in scope for your initial target?
Our initial target includes public equities, credit and direct real estate, as per the NZ AOA methodology and exclude assets including infrastructure equity and sovereign bonds that are outside of the 2025 guidance. Cash and derivatives will also be excluded, as will segregated mandates which are invested fully at the client’s discretion and externally managed funds for the time being.

What are you plans when it comes to setting a policy on coal and other fossil fuel investments?
We will have divested from all companies that make more than 5% of their revenue from thermal coal, unless they have set a science-based target and we are convinced of their ability to transition to net zero. This applies to all Aviva Investors managed funds, subject to investor consent and regulatory approval.

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.