Axium Infrastructure Inc.
Created in 2008, Axium Infrastructure is an employee-owned independent fund manager dedicated to investing in core infrastructure assets. Axium joined the Net Zero Asset Managers Initiative in April 2022 and made its initial target disclosure in May 2023.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
100% of total AUM (USD $7.188 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Sub-portfolio (portfolio-wide): 50% reduction in absolute tCO2e/C$m total portfolio NAV
Sub-portfolio (energy portfolio): 30% reduction in absolute tCO2e/MWh for Axium Infrastructure energy portfolio
Climate Solutions: Axium managed funds are already comprised of climate solutions (57% of NAV in renewable energy sectors as of December 31, 2022) and Axium intends to continue to increase its investments over AUM in these sectors as it works to reduce the overall GHG emissions of its portfolio.
Engagement: Axium already has a number of ongoing engagements focused on emission reduction activities with portfolio companies. Axium intends to continue to increase the number of these types of bilateral engagements with our partners as it works to reduce the overall GHG emissions of its portfolio.
GHG scopes included:
Our targets address all Scope 1 and Scope 2 portfolio emissions. We will look to include Scope 3 once data is sufficiently available and of sufficient quality. Total Scope 1 and 2 portfolio emissions are calculated in accordance with the Greenhouse Gas Protocol and Partnership for Carbon Accounting Financials (“PCAF”) methodologies. This exercise is conducted via a bottom-up exercise where real activity data is collected from the portfolio companies and aggregated to monitor and report on the corresponding emissions.
– The 50% reduction in tCO2e/C$m covers 100% of Axium’s managed portfolio emissions, on an absolute basis.
– The 30% reduction in tCO2e/MWh covers all energy generating assets within Axium’s energy portfolio (i.e. solar, wind, hydro, gas-fired generation and applicable utilities)
Net Zero Asset Owner Alliance Target Setting Protocol
As per the Net Zero Asset Owners Alliance Target Setting Protocol, Axium Infrastructure referenced the IPCC special report on global warming, 1.5°C scenario, which recommends a 49 to 65% reduction by 2030.
Policy on coal and other fossil fuel investments:
As per the Funds’ Investment Restrictions and Guidelines, Axium does not invest in any assets considered to be non-environmentally friendly, including coal and oil sands.
It is also important to note that Axium only invests in natural gas generation facilities in locations where such an investment contributes to reduce the intensity of GHG emissions per MWh. In these regions, natural gas generation help provide a reliable baseload in the transition to clean energy given the intermittency of certain renewable energy sources and contributes in the transition towards a carbon sober energy sector.