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BT Funds Management Limited NZ

BT Funds Management (NZ) Limited (BTNZ) manages all of Westpac’s investment funds. BT Funds Management joined the Net Zero Asset Managers Initiative in July 2021 and made its Initial Target Disclosure in November 2022.

Initial Target Disclosure: November 2022

100% of total AUM

initially committed to be managed in line with net zero

USD $7.07 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

Baseline(s):

Target(s):

2030

Our target is to achieve net zero GHG emissions by 2050 or sooner and manage our assets under management in line with a 1.5 °C pathway  (through monitoring of our assets absolute GHG emission and/or carbon footprint cumulative budgets corresponding to a 1.5°C pathway). 100% of our listed equities will be managed in line with this 1.5 °C pathway from 2023 onwards. We are aiming to manage 100% of our corporate and sovereign fixed and properties portfolios to this pathway by 2025 or earlier should data and well diversified investment strategies become sufficiently available. Due to current product availability and data constraints, we will seek to phase in derivatives and cash and cash equivalents by 2030. Currently, we do not invest in other asset classes (e.g. commodities) and would consider product availability and data constraints before establishing inclusion timeframes.

Baseline year performance for the target metric(s):

Our greenhouse gas (GHG) emissions baseline for listed equities is March 2019. For certain asset classes, where GHG or other relevant data is not currently available/or sufficient, we will be using the earliest baseline date from which adequate data is available. We are aiming to include 100% of our corporate and sovereign fixed income and property portfolios by 2025 or earlier should data and well diversified investment strategies become sufficiently available. Due to current product availability and data constrains, we will seek to phase in derivatives and cash and cash equivalents by 2030. Currently, we do not invest in other asset classes (e.g. commodities) and would consider product availability and data constrains before establishing inclusion timeframes. In addition, we are cognisant of limited data availability for Scope 3 GHG emissions across all asset classes.

GHG scopes included:

We confirm the target covers Scope 1, 2 and 3 GHG emissions. This is also consistent with the requirements of New Zealand’s Climate-Related Disclosure Standard. We are however cognisant of data constraints and definition of (materiality of) Scope 3 GHG emissions across all asset classes.

Methodology:

Own/other methodology

Scenario(s):

1.5 °C pathway is guided by the IPCC special report on global warming of 1.5 °C. Compared to the baseline we aim to reduce either absolute GHG emissions and/or our GHG emissions footprint in line with a 1.5 °C pathway through cumulative GHG emission budgets corresponding to a science-based 1.5 °C pathway. We will apply a portfolio-wide approach to this however are cognisant of the maturity and ability of Asset Managers, data and metrics, product availabilities and the asset classes within which they invest. Measurement metrics may require to be adjusted to e.g. carbon intensity for some or all portfolios should some of those constraints exists.

 

 

Additional information

Policy on coal and other fossil fuel investments:

Yes. Our Sustainable Investment Policy applies across all our AUM. We employ four pillars: Positive Outcomes (climate action and environmental contributions), stewardship, ESG integration and exclusions. We apply an extensive range of fossil fuel exclusions. We also exclude any company that derives more than 50% of its revenue from generating electricity from coal. Refer to our Sustainable Investment Policy