abrdn
abrdn is a global investment company and asset manager headquartered in Scotland with 25 offices globally across Europe, the Middle East, Asia-Pacific, and the Americas. It joined the Net Zero Asset Managers Initiative on 20 April 2021 and its initial target disclosure was published on 1 November 2021.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
30% of total AUM (USD $233 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio decarbonisation reference baseline
We cannot yet provide an aggregated figure for the baseline carbon intensity for all assets to be managed in line with net zero by 2050.
Target(s):
Portfolio decarbonisation reference target
The assets aligned to net zero 2050 will be managed to a target of at least 50% carbon intensity reduction by 2030 (PCAF economic emission intensity or WACI dependent on client requirements).
Allocation to climate solutions target
We will also increase investment in climate solutions and focus on a net zero stewardship strategy. We aim to increase the proportion of AUM invested in net zero aligned companies and climate solutions to measure real world decarbonisation, but have not set a specific bottom up target for this yet. We are developing transition alignment tools before we can set a baseline and evolve our approach.
Portfolio coverage target
We are committed to have a clear net zero pathway for all our Real Estate funds (£38bn) by 2025 – the pathway may be to target net zero by 2030, 2040 or 2050 at the latest and is subject to clients agreeing to mandate changes to deliver this.
GHG scopes included:
Scope 1 & 2 is included in target setting, Scope 3 to be tracked and reported on for most material sectors in line with PCAF.
Methodology:
Net Zero Asset Owner Alliance Target Setting Protocol
Net Zero Investment Framework
Scenario(s):
The target has been derived on the basis of bespoke net zero 2050 climate scenario analysis developed in partnership with Planetrics and recommendations of the Net Zero Asset Owner Alliance Target Setting Protocol which is aligned with the latest available science on net zero pathways.
Additional information
Proportion of AUM committed:
A phased approach will be applied to implement alignment. abrdn do not have full discretion over setting net zero 2050 goals for our investments as this is dependent on our client mandates and objectives. We aim to increase this proportion over time by actively engaging with clients and continuing to develop solutions for net zero 2050 across all asset classes.
Beyond what our clients mandate, we are setting decarbonisation targets across our assets where we have discretion to do so and expect the carbon intensity of the assets in scope to reduce by 50% by 2030 vs 2019. More detail on this will be published in a target setting approach paper in due course.
Policy on coal and other fossil fuel investments:
abrdn has a fossil fuel position statement and aligns fossil fuel engagements with science-based policies. For example, we are members of the Powering Past Coal Alliance and align our engagements with PPCA recommended coal phase out timelines – we also have restrictions on fossil fuels for certain products.
Further information:
Climate commitments made are available on our website. Our approach to climate change, TCFD report and climate related white papers are available here. This investing for net zero article provides detail on how we are thinking about net zero solutions. Further detail on what net zero directed investing means for us will be published by the end of 2021. For abrdn’s fossil fuel position statement.