Independent Franchise Partners, LLP
Independent Franchise Partners, LLP was established in 2009 to offer the Franchise investment approach to institutional investors through a dedicated investment management partnership. Independent Franchise Partnership joined the Net Zero Asset Managers Initiative in October 2022 and made its Initial Target Disclosure in January 2023.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
100% of total AUM (USD $13.3 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
44% of AUM has an SBT and 81% of AUM discloses to CDP on a portfolio-weighted basis (as at 31 December 2021).
SBTi target: 100% Science Based Target (SBT) coverage by 2030 across all AUM. Percentage coverage is calculated on a portfolio-weighted basis. We define an SBT as a target which has been approved by the Science Based Targets initiative (SBTi). We recognise an SBT when a company’s target is approved, not when a company commits to a target.
CDP target: 100% of AUM to provide disclosure to the Carbon Disclosure Project by 2025. Percentage coverage is calculated on a portfolio-weighted basis.
GHG scopes included:
Scope 1, 2 and 3 emissions are covered as per SBTi’s target-setting guidelines. For short-term targets, SBTi requires companies to set a scope 3 target when their scope 3 emissions are more than 40% of their total emissions.
SBTi scenarios are drawn from the Integrated Assessment Modelling Consortium (IAMC) and the International Energy Agency (IEA).
Policy on coal and other fossil fuel investments:
We have no investments in companies which derive greater than 5% of revenues from thermal coal related activities as defined by the SBTi’s guidance for financial institutions.
Companies directly involved in the exploration and production of fossil fuels are capital intensive and lack pricing power. As a result they do not meet our Franchise investment criteria.
Active and persistent engagement will be imperative to achieve our targets. Consistent with our returns-led approach to ESG, we will not achieve our targets through divestment or exclusion.
Date for which stated AUM applies: 30 September 2022