GIB Asset Management
GIB Asset Management is a UK-based sustainability-led boutique asset manager headquartered in London. 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
1.26% of total AUM (USD $0.164 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Engagement threshold baseline
We have 41% in-scope AUM (in material sectors) at least committed to net zero targets. We will engage with other assets to ensure that at least 70% are aligned or subject to engagement as recommended by the Net Zero Investment Framework. This will be prioritised on an AUM/emission basis.
Portfolio decarbonisation reference baseline
Our estimated Financed Emissions in millions of tons
• GIB Global Sustainable World Fund segregated mandate emissions: 2.414m ton CO2e; benchmark: 3.278
• GIB Global Sustainable World Fund UCITS: 0.526; benchmark 1.373
• GIB ESG Plus 0.762; benchmark 1.374
• Benchmark: MSCI World
Target(s):
Portfolio coverage target
Asset Alignment: Our target is to have 80% of in-scope assets to be ‘Committed to aligning’, ‘Aligning with Net Zero’, ‘Aligned with Net Zero’, or ‘Achieving Net Zero’, by 2025.
Portfolio decarbonisation reference target
Portfolio Emissions Reference Targets: Our point-in-time Scope 1 & 2 benchmark targets for in-scope portfolios:
• Reduce emissions by ~30% by 2025
Portfolio coverage target
Asset Alignment: Our target is to have 90% of in-scope assets to be ‘Committed to aligning’, ‘Aligning with Net Zero’, ‘Aligned with Net Zero’, or ‘Achieving Net Zero’, by 2030.
Portfolio decarbonisation reference target
Portfolio Emissions Reference Targets: Our point-in-time Scope 1 & 2 benchmark targets for in-scope portfolios:
• Reduce emissions by ~55% by 2030
Portfolio coverage target
Asset Alignment: Our target is to have 100% of in-scope assets to be ‘Committed to aligning’, ‘Aligning with Net Zero’, ‘Aligned with Net Zero’, or ‘Achieving Net Zero’, by 2050.
Portfolio decarbonisation reference target
Portfolio Emissions Reference Targets: Our point-in-time Scope 1 & 2 benchmark targets for in-scope portfolios:
• Reduce emissions by ~92% by 2050
GHG scopes included:
Using third party estimates to fill in gaps in reporting, we had 100% coverage or estimated coverage of the in-scope portfolios. We did not include any Scope 3 emissions. We shall phase in Scope 3 emissions in future iterations of our targets as data quality and processes improve.
Methodology:
Net Zero Investment Framework
Scenario(s):
IPCC P2 scenario (no or limited overshoot) global 1.5°C Pathway. As the base year is 2010, we have grossed up emissions by about 1.5% per year and now require, globally, approximately an 8.5% reduction in emissions annually between 2020 and 2030 to remain in line with 1.5°C scenario. Our view is slightly more aggressive than the oft-cited 7.6% reduction in emissions, in-line with our view that it is better to front-load emissions reductions.
Additional information
Proportion of AUM committed:
GIB AM manages USD 13 billion of assets, of which the majority is passively managed segregated mandates and 1.26% are active or index plus products. Of our actively managed assets 100% are managed in line with net zero targets. We expect our suite of active products to grow and will manage all new products in line with net zero. We therefore expect the percentage of our AUM managed in line with net zero to expand over time. Our passively managed accounts are considered out of scope for the current net zero target setting but we are committed to engaging with our clients to achieve net zero goals. Fixed income and sovereign bonds have also been excluded from in-scope assets due to the complexity in determining emissions and aligning with net zero goals. We hope to include these in the near future as data improves for these asset classes.
We believe that our target setting methodology is the most appropriate methodology for our products and current stage, and is consistent with our guiding principle of real world carbon emission reduction and impact. Using a benchmark target methodology acknowledges the strong emissions reduction work the companies in our portfolio have already achieved. We believe that including our absolute emissions reported will keep us focused and aware of the overall real-world impact of our portfolios.
Policy on coal and other fossil fuel investments: