Affirmative Investment Management
AIM is one of the world’s first dedicated Impact Fixed Income Fund Managers. AIM joined the Net Zero Asset Managers Initiative in July 2021 and made its Initial Target Disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
90% of total AUM (USD $1 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
At least 85% of the financed emissions from corporate bond issuers held in the portfolio will be invested in issuers that are considered Paris-Aligned, through setting verified science-based targets or equivalent verified decarbonisation commitments. AIM invests wholly in impact bonds, primarily listed use of proceeds bonds. All securities are closely assessed from a climate perspective, both at the issuer level and with reference to the listed use of proceeds for Green, Social and Sustainability bonds.
GHG scopes included:
In setting SBTs and equivalent targets, issuers will need to follow SBTi criteria for covering Scope 1, 2 and 3 emissions. In the assessment of financed emissions for portfolio coverage, we currently include Scope 1 and 2 emissions from corporate bond issuers. We aim to include Scope 3 once data is available and of sufficient quality.
IPCC Special Report on Global Warming of 1.5C.
SBTi scenarios based on IAMC 1.5C and WB-2C scenarios, and IEA ETP sector budgets.
Proportion of AUM committed:
The stated proportion excludes sovereign bonds. While sovereign bonds are closely assessed from a climate alignment perspective, they are not included in the targets at this stage due to a lack of commonly accepted and appropriate methodology for doing so. Once appropriate methodologies become available, sovereign bonds will be included in our targets. However, they are considered to be part of Affirmative Investment Management’s commitment to managing its portfolios in line with net zero carbon emissions by 2050. The sovereign bonds in our investment universe are mostly labelled use of proceeds green, social and sustainability bonds and have been assessed for their climate and environmental policies and performance.
Policy on coal and other fossil fuel investments:
AIM’s fossil fuel investment policy excludes investments in issuers with any revenues stemming from thermal coal mining or production or the exploration/extraction of unconventional oil and gas. Assessment of revenues stemming from fossil fuels is also a core part of our climate analysis, which all securities go through prior to investment.
For more information.
Our methodology is a custom methodology drawing on the Science Based Targets Initiative guidance for Financial Institutions and includes equivalent robust and verified approaches to target setting and climate alignment, using a financed emissions approach to portfolio coverage. As a dedicated fixed income impact investor, we have chosen to employ a methodology which reflects our investment strategy and appropriately targets the highest emitting constituents of our portfolios. In doing so we have set targets which provide an ambitious framework to achieve our firm-wide mission to build Paris Agreement aligned portfolios in support of the UN SDGs.
For more information, please refer to our impact report