Apostle Funds Management
Apostle Funds Management provides investment-related services to Australian and New Zealand investors. They offer the expertise of their affiliates and internal capabilities to create tailored portfolio solutions for local institutional investors in traditional and ethical investment areas. Apostle Funds Management joined the Net Zero Asset Management Initiative in October 2022 and made its Initial Target Disclosure in August 2023.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
100% of total AUM (USD $0.07 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio coverage baseline
At the baseline date, 38.55% of AUM is considered aligning or aligned to net zero. Aligning: 16.38%, aligned: 22.17%.
Portfolio decarbonisation reference baseline
278.29tCO2e / $mn invested Scopes 1,2,3. 55.64 tCO2e / $mn invested Scopes 1,2.
Engagement threshold baseline
As at 30 June 2022, 7.57% of financed emissions in material sectors were considered net zero or aligned . Please note: Apostle adheres to the Net Zero Investment Framework (NZIF) criteria for assessing net zero alignment of portfolio holdings. Apostle also adheres to the NZIF’s definition of material sectors.
43.04% of financed emissions in material sectors are subject to collective engagement and stewardship actions.
Allocation to climate solutions baseline
As at 30 June 2022, the allocation to climate solutions represented 19.02% of the Apostle People and Planet Diversified Fund’s AUM.
Target(s):
Portfolio coverage target
5-year portfolio coverage target:
On (or before) 30 June 2027 we aim to increase the percentage of FUM in the Fund that is achieving net zero or is considered to be aligned or aligning to net zero to 50%.
Portfolio decarbonisation reference target
5-year portfolio decarbonization target:
By the 30 June 2027 we aim to reduce the Fund’s Scope 1 and 2 emissions by 50% from baseline.
Engagement threshold target
5-year target: We aim to have at least 70% of the Fund’s financed emissions either assessed as net zero, aligned with a net zero pathway, or the subject of direct or collective engagement and stewardship actions by 30 June 2027.
We will endeavour engage with assets in our domestic and global Equity allocation, representing 70% of our financed emissions in our baseline year until they are assessed as achieving or aligned to a net zero by 2050 pathway or will be subject to engagement. By 2027 70% of our assets (based on financed emissions) will be assessed as achieving or aligned to a net zero by 2050 pathway, or subject to engagement.
Allocation to climate solutions target
5-year target: We aim to increase the Fund’s allocation to climate solutions to 30% by 30 June 2027.
Portfolio decarbonisation reference target
By the 30 June 2030 (or before) we aim to reduce the Fund’s Scope 1 and 2 emissions by 75% from baseline.
By the 30 June 2030 (or before) we aim to reduce the Fund’s Scope 1, 2 and 3 emissions by 30% from baseline.
Engagement threshold target
We aim to have at least 90% of the Fund’s financed emissions either assessed as net zero, aligned with a net zero pathway, or the subject of direct or collective engagement and stewardship actions on (or before) 1 January 2030.
By 2030 90% of our assets (based on financed emissions) will be assessed as achieving or aligned to a net zero by 2050 pathway, or subject to engagement.
Allocation to climate solutions target
We aim to increase the Fund’s allocation to climate solutions to 40% on (or before) 30 June 2030.
Portfolio decarbonisation reference target
By the 30 June 2040 (or before) we aim to reduce the Fund’s Scope 1, 2 and 3 emissions by 80% from baseline.
Portfolio coverage target
On (or before) 1 January 2050 we aim to have 100% of FUM in the Fund achieving net zero.
Portfolio decarbonisation reference target
By the 1 January 2050 we aim to reduce the Fund’s Scope 1, 2 and 3 emissions by 100% from baseline, to 0tCO2-e per $1 million invested.
GHG scopes included:
Scope 1, scope 2 and scope 3 emissions of the Apostle People and Planet Diversified Fund are included in our commitment to Net Zero portfolio emissions by 2050. Scope 1 includes investees direct emissions, scope 2 includes energy indirect emissions and Scope 3 covers other indirect emissions of the Fund’s investees. Scope 3 emissions are phased in from 2023, based on available information.
Methodology:
Net Zero Investment Framework
Scenario(s):
1.5°C IPCC scenario; SSP1-RCP1.9. The targets will be reviewed at least once every five years and in line with any changes made to the PAII Framework.
Additional information
Proportion of AUM committed:
The Apostle People and Planet Diversified Fund (APPDF) is a multi-asset Fund with exposure to listed equity (Australian and Global), Property and Infrastructure, Growth Alternatives, Fixed Income, Defensive Alternatives and Cash. Apostle has committed to the goal of achieving net zero portfolio emissions for the Apostle People and Planet Diversified Fund by 2050. As at 30 June 2022 the Apostle People and Planet Diversified Fund was the only contributor to AUM and 100% of this is to be managed in line with Net Zero.
Policy on coal and other fossil fuel investments:
The plan applies to 100% of the funds under management (FUM) within the Apostle People and Planet Diversified Fund and has been developed in line with the Paris Aligned Investment Initiative’s Net Zero Investment Framework (the PAII Framework). To achieve this, we have implemented a hard exclusion policy to the extraction or production of fossil fuels (coal, oil and natural gas).
We also use positive screening to invest in companies that are high climate performers as per the company rating as well as targeted investments in green and sustainable bonds, renewable- and clean energy-related exchange-traded funds and other unlisted investments in clean and renewable energy. We will continue to look for investments which reduce, sequester or decarbonise the planet from greenhouse gases (GHGs).
As an ethical and impact strategy with a hard exclusion approach to fossil fuels, Apostle’s portfolio is considerably different to products that continue to invest in high emitting industries. Regardless, Apostle seeks to mitigate the impact of climate change by investing in solutions that address SDGs 7 and 13 and by decarbonising high impact sectors across its portfolio in line with the Paris Aligned Investment Initiative: Net Zero Investment Framework Implementation Guide. Apostle also applies specific criteria regarding climate change in the selection, appointment and monitoring of its managers. This includes evaluating and, if necessary, seeking to improve the managers’ policies in relation to climate change, as well as how they measure and manage the impact of climate change risks and opportunities in their decision-making processes.
Further information:
https://apostlefm.com.au/apostle-people-and-planet-diversified-fund/