Ashmore Group Plc
Ashmore is a specialist Emerging Markets investment manager with over thirty years’ experience in these markets. Ashmore joined the Net Zero Asset Managers Initiative in July 2021 and made its Initial Target Disclosure in November 2022.
6% of total AUM
initially committed to be managed in line with net zero
USD $6.9 billion
currently committed to be managed in line with net zero
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
The decarbonisation will be applied at portfolio-level and reported in tCO2e/$mn revenue (Scope 1&2). The portfolio targets are based on the Weighted Average Carbon Intensity metric (WACI). Absolute Carbon Footprints will be made available and tracked to monitor alignment with the net zero intention.
Direct engagement with investees: : In 2021 Ashmore conducted 83 engagements on climate change decarbonisation and strategy e.g. on topics such as increased disclosure of GHG emissions or net zero target setting.
The equity and corporate debt assets aligned to net zero by 2050 will be managed to a portfolio decarbonisation reduction target of at least 22% by 2025 and at least 49% by 2030, in line with the recommended range by the NZAOA’s Target Setting Protocol.
Collaborative engagements supported e.g. via CA100+: : Ashmore is a supporting member of two ClimateAction 100+ engagement groups. Our aim is ensure that Ashmore continues to take an active and impactful part in these engagements with
the potential of joining additional engagement groups.
Direct engagement with investees: : As the Firm’s engagement strategy has recently been updated, the strategy is to focus on executing high-quality, meaningful engagements where we believe we can have an impact and not necessarily on the quantum.
Other: : Ashmore will also target climate-related engagement with the 20 investee companies with the highest owned emissions, as per recommendations by the NZAOA’s Target Setting Protocol.
Ashmore supports the idea that increased investments are needed in climate solutions – this is indeed particularly the case in Emerging Markets where there is an urgent need for investment in the energy transition. Consequently, Ashmore will continue to
support the growth of climate solutions through education, measurement, and product development. Specifically, over the FY2022/23 Ashmore will aim to identify appropriate metrics to account for climate finance solution exposure.
GHG scopes included:
Scope 1 & 2 will be included in the targets. Due to lack of reliable data, Scope 3 will be tracked and reported on where material but will not be included within the portfolio targets.
Net Zero Asset Owner Alliance Target Setting Protocol
The primary scenario considered by Ashmore is the International Energy Agency (IEA)’s Net Zero Emissions by 2050 Scenario (NZE). As Ashmore invests exclusively in Emerging Markets it was important to use a scenario which recognises the different stages of economic development of countries and regions, and the importance of ensuring a just transition.
Proportion of AUM committed:
Ashmore has included in the scope its ESG-labelled fund range of pooled funds, which includes all its Article 8 pooled funds. In addition, any client mandates managed to at least the same net zero ambition as that of Ashmore’s Interim Target will be considered ‘in scope’. Ashmore will introduce a phased approach to include further funds and mandates within the scope where we have discretion to do so and believe it is aligned with clients’ interests. For further inclusion of client mandates, Ashmore will engage with clients to do so, and continue to develop net zero solutions.
The 22% by 2050 and 49% by 2030 portfolio targets are derived from the recommended decarbonisation range NZAOA’S Target Setting Protocol. The chosen targets are at the end of both ranges based on two core consideration: firstly, the majority of the funds forming part of the Interim Target scope have already excluded fossil fuels and in that way already largely decarbonised. Secondly, as Ashmore invest only in Emerging Markets, there are unique decarbonisation challenges to account for including those of climate equity and a just transition.
Policy on coal and other fossil fuel investments: