Ecofin Investments
Ecofin Advisors Ltd operates is an investment management firm with 3 offices across the United States and the United Kingdom. It joined the Net Zero Asset Managers Initiative on 20 April 2021 and its initial target disclosure was published on 1 May 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
68% of total AUM (USD $1.3 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio coverage baseline
22% of portfolio companies setting a science-based target
Target(s):
Portfolio coverage target
75% of portfolio companies setting a science-based target
GHG scopes included:
SBTi verification includes Scope 1, 2 and, where appropriate, 3 emissions
Methodology:
Science Based Target initiative for Financial Institutions
Additional information
Proportion of AUM committed:
The covered assets represent all of Ecofin’s publicly traded equity strategies and any future public equity strategies we may launch. We intend to continue engaging with all investments and clients to encourage them to adopt science-based greenhouse gas reduction targets and commit to net zero emissions by 2050. There is not currently an approved methodology appropriate for us to measure and set targets for our private infrastructure and fixed income investments. We will continue working with network partners to assess methodologies and will include these assets into our commitment as it is practical to do so.
Policy on coal and other fossil fuel investments:
Additional information will be available on our website shortly and will apply to 100% of our AUM.
In short, our policy is that Ecofin will not invest in energy and power companies that have not demonstrated a commitment to a business model designed to succeed in a low-carbon economy. While Ecofin may invest in companies with a history of or legacy exposure to fossil fuels, such an investment would heavily rely on evidence that the company’s business model has shifted to alignment with net zero emissions. In no case will Ecofin invest in a company that has a material amount of revenues from selling fossil fuel reserves.