Breckinridge Capital Advisors
Breckinridge Capital Advisors is a Boston-based, independently owned asset manager specializing in investment grade fixed income portfolio management. Breckinridge joined the Net Zero Asset Managers Initiative in December 2021 and made its Initial Target Disclosure in January 2023.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
6.5% of total AUM (USD $2.7 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio coverage baseline
Our current bottom-up assessment of all corporate fixed income investments categorized as either aligning, aligned, or achieving net zero is currently 83% of AUM. This figure includes all AUM across all industries within the asset class.
Portfolio decarbonisation reference baseline
49.1MT CO2e /$1 million invested.
Engagement threshold baseline
Financed emissions net zero or aligned:
We engaged with sixteen corporate bond issuers that we categorized as either “achieving Net Zero” or “aligned towards net zero” representing a total $224 million (PAR). This represented 40%, or 810 MT of CO2e in financed emissions out of a total of 2,000 MT of CO2e in financed emissions for investments within the two categories.
Financed emissions under engagement:
We engaged with 33 corporate issuers that we categorize as “aligning” towards a net zero pathway representing $966mm(PAR). This represents 78%, or 85,000 MT of the total financed emissions stemming from investments within the “aligning” towards a net zero pathway category.
Target(s):
Portfolio coverage target
Achieve a minimum of 90% (by MV) to be considered achieving net zero, net zero aligned or aligning across all corporate fixed income AUM.
Portfolio decarbonisation reference target
-50% fair share emissions intensity reduction (MT C02e/$1mm invested) from our 2019 baseline.
Engagement threshold target
Financed emissions net zero or aligned:
We will engage with at least 70% of financed emissions annually, increasing to 90% by 2030.
Financed emissions under engagement:
90% of financed emissions to be subject to direct or collaborative engagement by 2030.
GHG scopes included:
We will report on scope 1 and 2 emissions and look forward to reporting on scope 3 emissions as data improves.
Methodology:
Net Zero Investment Framework
Scenario(s):
We incorporate sector specific net zero pathways as informed by the IPCC Special Report on 1.5 degrees, the 2020 UNEP GAP
report and we also incorporate research from the Science Based Targets Initiative as well as the Transition Pathways Initiative.
Additional information
Proportion of AUM committed:
Our initial AUM commitment reflects our integration of established methodologies for our eligible asset class (corporate fixed income) as outlined in the PAII Net Zero Investment Framework. It consists of bonds issued from companies that are either aligning or aligned with a decarbonization trajectory, as determined by the investment team. We remain committed to engaging with investee companies across all eligible AUM to better manage climate transition risks.
Policy on coal and other fossil fuel investments:
Information on our corporate sustainability including material climate policies will be reported to our stakeholders in our annual CSR. Breckinridge is a Massachusetts Benefit Corporation and files a CSR with the Commonwealth annually.