Frontier Investment Management
Frontier Energy is one of the leading developers and investors in renewable energy in Africa, through two investment funds, registered in Denmark. Frontier joined the Net Zero Asset Managers Initiative in June 2022 and made its Initial Target Disclosure in July 2023.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
100% of total AUM (USD $0.3 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio coverage baseline
100% of AUM material sectors is considered net zero, aligned, or aligning.
Allocation to climate solutions baseline
100% of AUM allocated to climate solutions.
Portfolio coverage target
100% of AUM in material sectors is considered net zero, aligned, or aligning by 2025; 100% at least net zero aligned by 2030.
Allocation to climate solutions target
100% of AUM allocation to climate solutions in 2025 and 2030.
GHG scopes included:
Frontier covers the scope 1, 2, and 3 emissions forportfolio companies and for the investment manager. Data is gathered using a bottom approach where portfolio companies report on business activities to estimate emissions. Frontier work closely with portfolio companies to improve the accuracy and reliability of the emissions. The emissions generated in 2022 were as follows:
Scope 1: 3,555 tCO2e
Scope 2: 436 tCO2e
Scope 3: 2,345
Net Zero Investment Framework
The scenario the target is derived from is IPCC’s 50% CO2 reduction by 2030.
Policy on coal and other fossil fuel investments:
Frontier has an Envorimental and Social management system (ESMS). The ESMS describes Frontier’s ESG Guiding Principles and Policies; the roles, responsibilities and oversight functions of Frontier as well as those responsible for ESG matters in the portfolio companies, the ESMS procedures and processes corresponding with the Investment Cycle, and Frontier’s approach to stakeholder engagement. Frontier’s ESMS includes an exclusion list that covers a long list of industries including coal and fossil fuel to ensure that FE II will not pursue investments that are not aligned with FE II’s ESG standards.
Further information can be found on the Frontier website.