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
10.48% Committed: 3.17%, aligning: 4.78%, aligned: 2.53%.
Portfolio decarbonisation reference baseline
230.67tCO2e / $mn invested scopes 1,2,3.
47.25 tCO2e / $mn invested scopes 1,2.
Engagement threshold baseline
As at 30 June 2022, 0% of financed emissions in material sectors were considered net zero or aligned. Please note: • When evaluating Net Zero alignment, we take our external provider’s conservative approach, by not considering any issuer net zero aligned due to the current state of corporate disclosure, government policy and technological development. • We have classified the following sectors as material sectors: utilities, materials, industrials, energy, and consumer discretionary.
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 24.93% of the Apostle People and Planet Funds 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%.
2040 target: On (or before) 1 January 2040 we aim to have 100% of FUM in the Fund achieving net zero.
Portfolio decarbonisation reference target
5-year portfolio decarbonization target: We aim to reduce the Fund’s Scope 1 and 2 emissions to 9.65tCO2-e per $1 million invested by 30 June 2027.
2040 target: We aim to reduce the Fund’s Scope 1, 2 and 3 emissions to 0tCO2-e per $1 million invested by 1 January 2040. We aim to expand measurement of the Fund’s carbon emissions to also include Scope 3 emissions from 2023 at which point the Fund’s emissions reduction target (above) will be revised but will remain in line with the Paris Aligned Investment Initiative’s Net Zero Investment Framework.
Please note less than 100% data coverage (76.56%), this will be revised as data coverage improves. The Apostle People and Planet fund was launched in 2022 which is why 2019 base year is not used.
The inclusion of scope 3 emissions is subject to availability of reliable data.
Engagement threshold target
5-year target: We aim to have 80% of financed emissions in material sectors subject to direct or collective engagement and stewardship actions by 30 June 2027.
We aim to have at least 20% of financed emissions either assessed as net zero or aligned with a net zero pathway on or before 30 June 2027.
2030 target: We aim to have at least 50% of financed emissions in material sectors subject to direct or collective engagement and stewardship actions on (or before) 1 January 2030.
We aim to have at least 50% of financed emissions either assessed as net zero, aligned with a net zero pathway, on (or before) 1 January 2030.
2040 target: We aim to have 100% of financed emissions assessed as net zero (or before) 1 January 2040.
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.
2030 target: We aim to increase the Fund’s allocation to climate solutions to 40% on (or before) 1 January 2030.
GHG scopes included:
The plan applies to 100% of the applicable funds under management and has been developed in line with the Paris Aligned Investment Initiative’s Net Zero Investment Framework (the PAII Framework).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 2040. Scope 1 includes investees direct emissions, scope 2 includes energy indirect emissions and Scope 3 covers other indirect emissions of the Fund’s investees.
Methodology:
Net Zero Investment Framework
Scenario(s):
IEA NZE 2050 scenario. 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 2040, ahead of the global goal of 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 FUM within APPDF. We have implemented a hard exclusion policy to the exploration or production of fossil fuels.
This includes:
- Fossil fuels such as thermal coal, petroleum, oil and oil shales, natural gas, coal seam gas, tar sands and oil sands
- Controversial fuels such as peat
- Coal-fired electricity stations
We also use positive screening to invest in companies that are high climate performers 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). 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
Further information: