Founded in 1977, GMO is a global asset manager committed to delivering superior performance and advice to our clients. We are privately owned, which allows us to singularly focus on our sole business – achieving outstanding long-term client investment outcomes. Offering multi-asset, equity, fixed income, and alternative strategies, we invest with a long-term, valuation-based philosophical approach. GMO joined the Net Zero Asset Managers Initiative in November 2021 and made our Initial Target Disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
53.5% of total AUM (USD $35 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio coverage baseline
53.5% of AUM included in PCFI reduction target.
Portfolio decarbonisation reference baseline
Portfolio coverage target
60% of AUM covered by a PCFI reduction target by 2025.
Portfolio decarbonisation reference target
-65% or 71tCO2e
GHG scopes included:
Our PCFI and target cover Scope 1 and 2 financed emissions.
Net Zero Investment Framework
We use scenario pathways from the Network for the Greening of the Financial System. This informs our expected baseline reduction, onto which we layer engagement targets. We then translate this into targeted portfolio carbon footprint reduction.
Proportion of AUM committed:
We include all AUM where we have robust data and methodologies for assessing financed emissions. We exclude assets managed within separately managed accounts, unless the account holder has made a net zero commitment. We are aiming to increase the AUM covered to 60% by 2025. We are also looking to set targets for sovereign debt, which would further increase our AUM coverage.
Policy on coal and other fossil fuel investments:
We currently exclude coal and fossil fuels in some of our investment strategies (~10% of the net zero AUM). There are no plans to develop a firm-wide policy on fossil fuels at this time.