GAWA Capital
GAWA Capital is an European impact investment management firm committed to supporting positive social and environmental impact while generating financial returns for investors. They joined the Net Zero Asset Managers Initiative in February 2023 and made their Initial Target Disclosure in March 2024.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
100% of total AUM (USD $0.2 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Engagement threshold baseline
3% of financed emissions under engagement.
Portfolio coverage baseline
N/A
Allocation to climate solutions baseline
0%
Target(s):
Engagement threshold target
30% of financed emissions under engagement.
GAWA’s typical investee are Tier 2 and 3 inclusive financial institutions in developing and emerging markets with low carbon intensity that are not currently engaged or aligned with Net Zero Targets.
GAWA will focus its engagement efforts on catalyse the adoption of a long term 2050 goal consistent with global net zero and the initial Disclosure of scope 1, 2 and material scope 3 emissions of this type of FI.
Allocation to climate solutions target
10%
GAWA is expecting to launch a new fund in 2024 focused fostering systemic adoption of climate lending and risk management
practices by inclusive financial institutions. This will catalyse Gawa’s and its investees AUM allocation to climate solutions.
Engagement threshold target
25% of financed emissions net zero or aligned.
60% of financed emissions under engagement.
Portfolio coverage target
25% of AUM in material sectors is considered net zero, aligned, or aligning.
GAWA’s typical investee are Tier 2 and 3 inclusive financial institutions that are characterized by a low carbon intensity and located in countries that are relatively low emitting. Methodologies to measure financed emission (“PCAF”) are not widely used in these contexts and must rely heavily on sectorial proxy data that might not adequately represent emissions intensity of low income populations. GAWA will make efforts to lead the work with the FIs and/or data providers to calculate or estimate the GHG of the FI’s underlying portfolio.
Allocation to climate solutions target
20%
Engagement threshold target
100% of financed emissions under engagement.
Allocation to climate solutions target
25%
Portfolio coverage target
50% of AUM in material sectors is considered net zero, aligned, or aligning.
Engagement threshold target
90 % of financed emissions net zero or aligned.
Portfolio coverage target
90% of AUM in material sectors is considered net zero, aligned, or aligning.
Engagement threshold target
100% of financed emissions net zero or aligned.
Portfolio coverage target
100% of AUM in material sectors is considered net zero, aligned, or aligning.
GHG scopes included:
Scope 1: Facilities or vehicles operated by our investees
Scope 2: Purchased electricity by our investees
Scope 3: Financed emissions of our investees
Methodology:
Net Zero Investment Framework
Scenario(s):
Paris-aligned pathway consistent with achieving the 1.5°C goal. There is a lack of specific, inclusive and granular pathways currently available suitable to our current portfolio.
Additional information
Proportion of AUM committed:
GAWA’s current assets under management are largely private credit and equity directed towards financial institutions promoting financial inclusion of poor and low-income clients in emerging and frontier markets. GAWA also has a minor percentage of assets dedicated to investments in companies in the agricultural value chains.
Policy on coal and other fossil fuel investments:
There is no specific policy focused on coal and other fossil fuel sectors, however investments related to coal or other fossil fuels will not take place as they do not align with GAWA’s overreaching mission of obtaining positive environmental and social outcomes through its investments. Besides, GAWA conducts exhaustive analysis during due diligence to identify areas where the entity could be exposed to potential Environmental & Social risk as a result of the borrowers/clients in its portfolio and/or prospective business. In accordance with IFC’s Sustainability Policy, GAWA categorizes investments using a system based on the relative magnitude of E&S risks and impacts, and investments in fossil fuels and coal would be categorized as high risk. Gawa does not conduct investments to fall under high-risk categories.