Generation Investment Management
Generation Investment Management is an independent, private, investment management partnership with offices in London and San Francisco. It joined the Net Zero Asset Managers Initiative on 11 December 2020 and its initial target disclosure was published on 1 November 2021.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
100% of total AUM (USD $36 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio coverage baseline
Generation’s Global Equity strategy, accounting for USD 32 billion of assets, currently has 25% Science Based Target coverage on a portfolio weighted basis.
Portfolio coverage target
100% Science Based Target coverage by 2030 across all AUM. Interim target of 60% SBT coverage by 2025 across all AUM. Percentage coverage is calculated on a portfolio weighted basis. SBTs are recognised when a target is set, rather than when a commitment to set a SBT is made.
GHG scopes included:
Scope 1, 2 & 3 financed emissions are covered in line with SBTi requirements (SBTi requires companies to set Scope 3 targets when their Scope 3 emissions are more than 40% of their total Scope 1, 2 & 3 emissions).
Science Based Target initiative for Financial Institutions
SBTi scenarios are drawn primarily from the Integrated Assessment Modelling Consortium (IAMC) and the International Energy Agency (IEA).
Policy on coal and other fossil fuel investments:
Generation has no investments in fossil fuel companies across our entire AUM, exceeding the SBTi requirement to phase out financial support to thermal coal across all investment activities in line with a full phaseout by 2030 globally.
Target setting: SBTi requires 100% Science Based Target coverage by 2040 for alignment with net zero by 2050. Generation has committed to align with net zero by 2040, and we have therefore elected to commit to 100% Science Based Target coverage by 2030. We will also monitor portfolio emissions and portfolio implied temperature rise. We expect to see linear annual portfolio emissions reductions of at least 5%, consistent with delivering a fair share of the 50% global reduction in CO2 emissions by 2030 identified as a requirement in the IPCC special report on global warming of 1.5°C.