Algebris Investments is an independent global asset manager with offices in London, Milan, Rome, Zurich, Luxembourg, Dublin, Boston, Singapore, and Tokyo. It joined the Net Zero Asset Managers Initiative on 29 March 2021 and its initial target disclosure was published on 1 May 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
57% of total AUM (USD $12 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio coverage baseline
Portfolio coverage target
100% of portfolio companies setting a science-based target (SBT) by 2040
GHG scopes included:
In setting SBTs, investee companies will need to follow SBTi criteria for covering Scope 1 and 2 emissions, as well as Scope 3.
Science Based Target initiative for Financial Institutions
Paris Agreement – well below 2°C
Proportion of AUM committed:
The methodologies recognised by NZAM are in our view currently not applicable to our non-performing loans (NPL) strategy, which has therefore not been included in our initial commitment. Our NPL strategy accounts for approximately 10% of total AUM as of December 2021.
Discretionary mandates account for approximately 27% of total AUM as of December 2021. We aim to add discretionary mandates to our target upon approval by clients. We prudently exclude these assets from our initial AUM target pending such approval.
A residual approximate 5% of total AUM combined is invested in our Italian equity strategy and our global credit strategy. These have not been included in our interim target at this time, but we are working towards including them in the near future.
Policy on coal and other fossil fuel investments:
Yes, we have a science-based fossil fuel policy. Funds included in scope for our NZAM initial target are prevented from any investment in companies operating in the coal sector, Arctic oil and tar sands, and are subject to strict limits for investment in companies operating in conventional oil and gas. Funds currently not in scope for our NZAM initial target are nevertheless also subject to strict limits regarding investment in coal and/or unconventional oil and gas.
Since 2019, Algebris has planted 82,000 trees and in 2020 the company launched the AlgeTrees project with a commitment to plant 1 million more trees in the coming years. The project entails assessing Algebris emissions, translating CO2 into an equivalent number of trees by making assumptions on the trees’ absorption capacity over their life cycle, planting trees that can contribute to the economic welfare of the local community in line with the UN Sustainable Development Goals, monitoring their growth on an ongoing basis and replenishing the stock in the event some perish.
More information available here.