GAM Investments
GAM Investments is an independent, pure play asset management group headquartered in Zurich. GAM joined the Net Zero Asset Managers Initiative in July 2021 and made its Initial Target Disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
36% of total AUM (USD $12.5 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio coverage baseline
9% of AUM in material sectors is considered net zero, aligned, or aligning.
Portfolio decarbonisation reference baseline
Scopes 1 & 2: 210 tCO2e/$mn invested (Data coverage: 80% of AUM).
Engagement threshold baseline
Approximately 39% of financed emissions in material sectors are subject to direct or collaborative engagement.
Target(s):
Portfolio coverage target
75% of AUM in material sectors considered to be achieving net zero, aligned to net zero, or aligning to net zero by 2030
Portfolio decarbonisation reference target
50% reduction in financed carbon emissions (carbon emission per USD million invested attributed using EVIC) by 2030
Engagement threshold target
90% of financed emissions in material sectors are either assessed as net zero, aligned with a net zero pathway, or the subject of direct or collective engagement and stewardship actions.
GHG scopes included:
The targets cover scope 1 and scope 2 GHG emissions, as this is where the data is most robust and comparable. We will consider Scope 3 emissions as part of our engagement where we consider these material, for example banks. We have set data coverage thresholds for Equity (90%) and, Fixed Income (70%) by market value. We engage with companies and data providers to improve data coverage and quality.
Methodology:
Net Zero Investment Framework
Scenario(s):
International Energy Agency (IEA) 1.5 °C scenario (Net Zero by 2050) underpins a number of methodologies we rely on, such as ClimateAction100+ Net Zero Benchmark and the Transition Pathway Initiative. Some data points are based on other scenarios ‘below 2 degrees’ scenarios.
Additional information
Proportion of AUM committed:
Our total AuM represents our Investment Management business and does not include our Fund Management Services business. The AuM in scope reflects our Investment management business funds classified as equity or corporate fixed income funds. Asset classes not currently in scope include for example sovereign, mortgage-backed and insurance-linked securities, multi-asset, and alternatives, due to methodological and data limitations. We are actively working with membership bodies such as the IIGCC, and research providers such as MSCI, to support the development of methodologies and data. We are committed to increasing our in-scope assets as these improve. Client mandates are initially out of scope but we will be engaging with our clients to determine the most appropriate way to support their net zero goals.
Policy on coal and other fossil fuel investments:
Yes. We recognise that fossil fuels will continue to play a role in the energy mix, albeit at a necessarily much more limited level. We may therefore continue to hold companies with fossil fuel exposure in our portfolios. We consider engagement to be the more impactful approach to deliver real-world emissions reductions relative to divestment. However, as active managers we will escalate or exclude where we consider insufficient progress is being made. As signatories to the Powering Past Coal Alliance (PPCA)-Finance Principles we commit to supporting the just transition away from unabated coal power generation by no later than 2030 in the OECD and EU, and no later than 2040 in the rest of the world. Our GAM Sustainability Exclusions Policy which applies to over 80% percent of the in-scope AuM restricts investments in high-impact fossil fuels, including thermal coal and oil sands.