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Impax Asset Management

Founded in 1998, Impax is a specialist asset manager investing in the opportunities arising from the transition to a more sustainable global economy. Impax joined the Net Zero Asset Managers Initiative in October 2021 and made its Initial Target Disclosure in November 2022.

Initial Target Disclosure: November 2022

92% of total AUM

initially committed to be managed in line with net zero

USD $49.6 billion

currently committed to be managed in line with net zero

Information on interim target(s) covering the proportion of assets to be managed in line with net zero

Baseline(s):

2021

Portfolio coverage baseline

Baseline % distribution of committed AUM in ‘transition aligned, aligning and non-aligned” categories, as of 31 December 2021:

– Transition aligned climate management & processes 47%

– Transition aligning climate management & processes 45%

– Transition non-aligned climate management & processes 8%

We are committed to reporting on the level of our investment in climate solutions and on the related avoided GHG emissions. As of 31 December 2021, the percentage of Impax’s committed AUM invested in climate solutions (companies and assets) was 64% or US$31.8BN.

Target(s):

2030

Portfolio coverage target

Aim for 100% of committed AUM being climate resilient and within the categories “transition aligned” or “transition aligning” related to climate management and processes by 2030. We project that at least 50% of committed AUM will be classified as aligned by 2030.

GHG scopes included:

As part of Impax’s climate risk analysis and impact measurement, we gather all Scope 1, 2 and 3 data available and estimate Scopes 1 and 2 emissions where those are not reported. Impax is specialised in investing in climate and environmental solutions and believe that avoided GHG emissions, sometimes called Scope 4, are very important to measure as a key metric evidencing the impact of climate solutions. We have published information on the availability and coverage of that data in our annual Impact Report┬ásince 2015. We are working to develop common standards for measurement and reporting of GHG avoidance, with industry organisations and other investors.

Methodology:

Net Zero Investment Framework

Scenario(s):

As part of Impax’s climate risk analysis and impact measurement, we use the IPCC 1.5- and 2.0-degree scenarios, to assess the global level of emissions reduction required to limit warming to 1.5- or 2.0-degrees by 2030. We also analyse companies’ earnings impact from future carbon pricing, using temperature scenarios by NGFS.

Additional information

Proportion of AUM committed:

Impax’s initial commitment consists of all actively managed listed equities and private equity investments which represent 92% of assets under management (AUM) as of 31 December 2021. The remaining AUM consists of listed equities in systematic strategies, advisory accounts, fixed income issuers and cash for which transition alignment analysis are either not yet undertaken or completed or methodologies for transition alignment are not available. Over time we plan to increase the proportion of assets under management committed.

Policy on coal and other fossil fuel investments:

Impax invests in companies and assets that are well positioned to benefit from the transition to a more sustainable economy.

For all of our strategies, we aim to build more resilient portfolios for our investors by managing risks, including climate-related risks. Specifically, we believe climate change poses material risks to fossil fuel companies in the form of expected government intervention to regulate greenhouse gases and technology risks and our exposure to companies linked to fossil fuels is very limited overall.

Additionally, a certain number of our strategies are formally “fossil fuel free” and we have published our definition of that here.

Further information:

Methodology specification: Impax’s approach follows the PAII Net Zero Investment Framework and is influenced by the SBTi Portfolio Coverage Approach.

Impax investment philosophy.
Impax’s approach to the Paris Climate Agreement.
Impax Impact reporting.
Impax Engagement and Policy Advocacy Reporting.