Caixa Gestão de Ativos & CGD Pensões – Sociedade Gestora de Fundos de Pensões
Caixa Gestão de Ativos is an asset management domiciled in Portugal and part of Grupo Caixa Geral de Depósitos. They joined the Net Zero Asset Managers Initiative in September 2022 and made their Initial Target Disclosure in November 2023.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
22.5% of total AUM (USD $3.88 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio decarbonisation reference baseline
36.3 tCO2e/Million USD invested (40.8 tCO2e/Million EUR)
Engagement threshold baseline
1. Baseline performance: financed emissions net zero or aligned: 36% of CXA’s portfolio emissions intensity have net zero targets (investees with SBTi commitment or SBTi target set)
2. Baseline performance: financed emissions under engagement: 30% of CXA’s portfolio emissions intensity was related to investees which were under CXA’s engagement activities in 2022 (proxy voting in environmental issues or collective engagement regarding environmental issues).
Portfolio coverage baseline
Portfolio Coverage Approach (SBTi)
At 30/06/2023, 70% of CXA’s equity and corporate bonds AUM’s were under Science Based Target (50% target set and 20% formally committed to SBTi). The AUM’s split by asset class was the following:
- Equity direct investment – 77% of AUM’s
- Corporate fixed income direct investment – 54% of AUM’s
Target(s):
Portfolio decarbonisation reference target
Portfolio Emissions Intensity Target for December 2030 –> -50% vs 2019
Engagement threshold target
1. Baseline performance: financed emissions net zero or aligned: at least 50% of CXA’s portfolio emissions intensity will have net zero targets (investees with SBTi commitment or SBTi target set) in December 2030
2. Baseline performance: financed emissions under engagement: at least 50% of CXA’s portfolio emissions intensity should be under CXA’s engagement activities in December 2030 (either proxy voting in environmental issues or engagement activities regarding environmental issues).
Portfolio coverage target
Portfolio Coverage Approach (SBTi)
By 2025, 75% of CXA’s direct investment AUM’s committed to setting a Science Based Target or has already set a target
By 2030, 85% of CXA’s direct investment AUM’s committed to setting a Science Based Target or has already set a target and at least 50% will have a verified target.
GHG scopes included:
CXA targets consider full coverage of scope 1, 2 and will update targets with scope 3 analysis as soon as CXA considers the methodology robust with standards across the industry.
Methodology:
Net Zero Investment Framework
Science Based Target initiative for Financial Institutions
Scenario(s):
Inevitable Policy Response (IPR) Net Zero 1.5°C required policy scenario and Science Based Targets (SBTi).
Additional information
Proportion of AUM committed:
Caixa Gestão de Ativos (CXA)/CGD Pensões manages assets covering different asset classes including direct investment in equities, fixed income (sovereign and corporate bonds), money market instruments, real estate and indirect investment namely through external mutual funds.
CXA’s first targets will include only assets managed internally as direct investment, including the total of equities and corporate fixed income. For those assets CXA defined a methodological approach with the support of an international external provider leader in climate themes.
Assets such as sovereign fixed income, real estate, external funds, derivatives and cash are excluded at this point due to the current limitations in methodology. As methodology improves we expect to increase the proportion of assets in future upgrades of CXA’s commitment towards the 100% goal.
Policy on coal and other fossil fuel investments:
As mentioned CXA has identified the reduction of 50% of emissions intensity as target by 31 December 2030, in line with the IPCC Guidelines. Based in CXA analysis this value is consistent with the estimated level of reduction in emissions rate derived from the application of the science-based pathways to the baseline portfolio.
In parallel by establishing aggressive targets of our portfolio committed to setting a SBTI target or having already set a target by December 2030 (85%), we are preparing our portfolios in advance to be aligned with the target of achieving net zero by 2050.
Adding to this background CXA’s focus regarding engagement activities, including voting and collective / direct engagements and the ambition to increase investments in climate solutions according to Clients preferences support our goal to contribute to the global challenge of 50% reduction in CO2 emissions by 2030.
Further information:
CXA’s SRI Policy at https://www.cgd.pt/Site/CXA/Caixa-gestao-ativos/Sustentabilidade/Documents/Politica_ISR_CXA.pdf
An overview of the net-zero targets of our parent company, Caixa Geral de Depósitos can be found on the CGD’s website at:
https://www.cgd.pt/Institucional/Noticias/Pages/Plano-Transicao-para-Neutralidade-Carbonica-2050.aspx
https://www.cgd.pt/Sustentabilidade/Desempenho/Documents/DOC_NET-ZERO-2050.pdf