Gramercy Funds Management LLC
Gramercy is a dedicated emerging markets investment manager based in the United States. They joined the Net Zero Asset Managers Initiative in August 2022 and made their Initial Target Disclosure in October 2023.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
15% of total AUM (USD $0.7 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio coverage baseline
As of December 31, 2022, approximately 19% of the AUM in the material sectors of Energy, Utilities, Industrials and Materials are aligning with net-zero. These assets have either committed to emissions reduction either via a self reported target for net zero or the adoption of a science based plan that follows SBTi criteria.
Portfolio decarbonisation reference baseline
Our Weighted Average Carbon Intensity is 530.74 tCO2e per million invested on a total AUM figure of approximately $725 million.
Target(s):
Portfolio coverage target
Percentage of AUM in material sectors is considered net zero, aligned, or aligning:
- 50% by 2030
- 75% by 2040
- 100% by 2050
Portfolio decarbonisation reference target
Assets aligned or aligning to net zero will target a 50% carbon intensity reduction by 2030, a 75% reduction by 2040 and net zero by 2050 as measured by WACI.
GHG scopes included:
We use Scope 1 and 2 in our carbon targets for corporate entities. We intend to include Scope 3 progressively over time as data becomes more robust. We monitor sovereigns for GHG emissions and intensity.
Methodology:
Net Zero Investment Framework
Scenario(s):
A reduction of 50% by 2030 aligns with the IPCC special report on global warming and we believe would set us on track to achieve net zero by 2050.
Additional information
Proportion of AUM committed:
Gramercy manages multiple investment strategies covering a range of asset types in emerging markets. In our first year, we are focusing on public corporate and sovereign credits in our strategy that is currently most sought after by the investor community. We aim to increase this over time which we believe will be aided by an anticipated increase in data quality and availability.
Policy on coal and other fossil fuel investments:
As our in scope assets under management grow, we will assess the development of a policy.
Further information:
Our committed assets will be increased, and target reassessed with better information such that our AUM contributes to the goal of net zero by 2050. Interim targets and active engagement with issuers will be deployed in an effort to shorten the time frame. We will strive for all portfolio companies to measure and report on total and financed emissions to ensure the data gap that exists narrows and global goals are achieved.