Close Brothers Asset Management
Close Brothers Asset Management is part of the Close Brothers Group plc, a merchant bank in the UK. 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
18% of total AUM (USD $3.7 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio coverage baseline
178 out of the 305 equity and corporate bond holdings with data in the committed AUM are currently aligned to or under 1.5°C
of global warming above pre-industrial levels.
Portfolio decarbonisation reference baseline
For our equities we will use the benchmark MSCI All Countries World Index as the baseline in the committed AUM. As at 31/12/2019 the weighted average carbon intensity was 183 tCO2e/USD million sales. For our corporate bonds will use the benchmark ICE BofA Global Corporate Index as the baseline in the committed AUM. As at 31/12/2019 the weighted average carbon intensity was 318 tCO2e/USD million sales.
Engagement threshold baseline
1. Baseline performance: financed emissions net zero or aligned: 17% of financed equity and corporate bond emissions (Scopes 1 and 2) in the committed AUM are currently aligned to a 1.5°C of global warming or under.
2. Baseline performance: financed emissions under engagement: 17% of financed equity and corporate bond emissions (Scopes 1 and 2) in the committed AUM are currently aligned to a 1.5°C of global warming or under, or are subject to direct or collective engagement.
Portfolio coverage target
100% of AUM in material sectors is considered net zero, aligned, or aligning.
Portfolio decarbonisation reference target
Weighted average carbon intensity 50% below relevant benchmarks for each portfolio by 2030 from 2019 baseline.
Engagement threshold target
By 2025, 70% of financed emissions (Scopes 1 and 2) are either aligned to a net-zero pathway or subject to direct or collective engagement and stewardship actions.
By 2030, 90% of financed emissions (Scopes 1 and 2) are either aligned to a net-zero pathway or subject to direct or collective engagement and stewardship actions.
GHG scopes included:
Scopes 1 and 2. Data for Scope 3 is not of sufficient completeness, robustness or reliability currently.
Net Zero Investment Framework
IPCC SSP1-1.9. The IPCC special report on global warming of 1.5°C, which implies linear 50% reduction by 2030.
Proportion of AUM committed:
Due to the availability of adequate carbon emissions data, the assets in-scope for carbon emissions targets only include direct equities and direct corporate fixed income. 17 equity and corporate bond holdings in the committed AUM do not have data coverage. Where the availability of data improves, we will look to include other asset types.
Policy on coal and other fossil fuel investments:
We have a formal exclusion of thermal coal on our Sustainable Select Fixed Income, Sustainable Balanced and Select Global Equity funds. However, due to the nature of the majority of our AUM being under bespoke mandates, which are client driven, a firm wide policy on fossil fuels is not currently in place.