Deka Investment GmbH Deka Vermögensmanagement GmbH
Deka Investment unites specialists for different asset classes and investment styles under one roof. Deka Investments joined the Net Zero Asset Managers Initiative in November 2021 and made its Initial Target Disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
37.4% of total AUM (USD $104 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
2019 WACI Baseline: 203,6 (tCO2e/ million $ sales) (Deka Investment GmbH, Deka Vermögensmanagement GmbH and Deka International S.A. combined).
Number of engagement actions currently undertaken: > 100
Direct engagement with investees: See above
Sector and value chain engagement – with numerous companies and stakeholders from the same sector or value chain: At present, we focus on key companies and do not yet engage along sectors or value chains. We are currently extending our engagement strategy and will consider sector and value chain engagement.
Other: Building on our many years of experience in engagement and following the recommendations of the Target Setting Protocol, we will expand our current stewardship and engagement policy within the following month. For the time being, we aim to engage 20 highest emitters in our portfolio towards a credible and robust decarbonisation strategy. We will require the selected companies to set SBTs and to disclose to the CDP if not done yet, since we consider both as critical to reach net zero. Not disclosing on CDP is a reason for not discharging/re-electing board members. In Annual General Meetings we vote on behalf of our shareholders and recognize Environmental, Social and Governance aspects, and aim to expand these activities in the future. As part of our engagement, we will monitor the decarbonisation progress of the highest emitters and will regularly engage those without progress or without appropriate measures taken. We will hold companies that are already on their path to net zero under SBTi Framework, responsible for achieving their goals. We will support them on their path to net zero by sharing our expertise with them.
Target(s):
Engagement Target: Collaborative engagements supported e.g. via CA100+: Currently, we are co-signer of the CDP Non-Disclosure Campaign and are now reviewing a potential participation in CA100+. Depending on the result, we can set quantitative targets on collaborative engagements going forward.
Direct engagement with investees: We will engage with the 20 highest emitters in our portfolio to set an approved Science Based Target. We aim to increase the SBT portfolio coverage for equities and corporate bonds but have not quantified this target, yet. Furthermore, we will engage with at least four asset managers to manage their portfolios in line with net zero and to join NZAMI.
Sector and value chain engagement – with numerous companies and stakeholders from the same sector or value chain: As part of our engagement commitment, we will identify engagement opportunities along sector strategies and value chains and will investigate appropriate target numbers.
Other: N/A
Sub-portfolio Target: We target a 50% reduction of the Weighted Average Carbon Intensity (tCO2e/ million $ Sales) related to scope 1&2 emissions by 2030. While we do not set a separate target for 2025, we aim to reduce our WACI continuously to follow the required decarbonisation pathway. Tracking of scope 3 emissions will start simultaneously with the intention to better understand how and if data improves and if scope 3 emissions decline in accordance with scope 1&2 emissions.
Financing Transtion Target: We aim to steadily increase the share of AUM in Climate Solution Investments specifically focusing on equity and bonds, and report progress on an annual basis.
GHG scopes included:
For current targets, we focus on Scope 1 and 2 portfolio emissions. Regarding Scope 3 emissions, improved data quality and coverage is required to set quantitative targets. Nevertheless, we will track and consider scope 3 emissions as far as possible, especially for sectors where Scope 3 emissions are substantial (i.e. automotive). As soon as MSCI provides data on physical intensity, we will set sector targets covering Scope 3 emissions, where they are material. In addition, we track our engagement efforts and achievements looking at the company’s decarbonisation progress including Scope 3 emissions.
Methodology:
Net Zero Asset Owner Alliance Target Setting Protocol
Scenario(s):
Targets are derived from the IEA Net Zero 2050 scenario in line with the IPCC special report on global warming of 1.5°C.
Additional information
Proportion of AUM committed:
Our targeting strategy starts with assets on which we have a high degree of control. For this reason, we initially focus on mutual funds where Deka Investments GmbH, Deka Vermögensmanagement GmbH or Deka International S.A. act as portfolio managers. The scope of assets was determined considering the Target Setting Protocol as well as SBTi guidance, focusing on asset classes with an available and recognized net zero methodology. Following most of our peers, we exclude ETFs from the target scope since they depend on the related index composition. In addition, we exclude all funds owned by institutional investors as they are subject to fixed terms / management policy agreed with clients. We plan to increase coverage in the next years.
Policy on coal and other fossil fuel investments:
Our current ESG policy excludes investments in companies in the coal extraction and power generation sector as soon as the following turnover limit is exceeded: For mutual funds we exclude companies in coal extraction with a turnover share of 30% or more and companies in coal power generation with a turnover share of 40% or more. For sustainable mutual funds we exclude companies in coal extraction and we exclude companies in coal power generation with a turnover share of 10% or more. All details can be found under the link provided under #48. Nevertheless, we will start developing a dedicated fossil fuel policy within the coming months, considering the requirements of the Net Zero Asset Managers Initiative. For further information, we refer to our upcoming Investor Climate Action Plan