InfraRed Capital Partners
InfraRed Capital Partners is an international infrastructure investment manager, investing in real assets which contribute positively to society and support the transition to a net zero future. It operates worldwide from offices in London, New York, Sydney and Seoul. InfraRed joined the Net Zero Asset Managers Initiative in July 2021 and made its Initial Target Disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
83% of total AUM (USD $11.82 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio coverage baseline
8% of AUM in material sectors is considered net zero, aligned or aligning.
Engagement threshold baseline
Whilst we regularly engage our portfolio companies on the transition to net zero both indirectly and directly, we have not formally tracked this metric to date. Therefore, we have set a baseline of 0%.
Allocation to climate solutions baseline
45% of AUM allocated to climate solutions.
We define investments in climate solutions as including renewable energy, battery storage and other supporting infrastructure for the energy transition. We note that the EU Taxonomy may lead to certain assets being reclassified, and our baseline and targets may need to be revised to reflect such changes.
Target(s):
Portfolio coverage target
70% of AUM in material sectors is considered net zero, aligned or aligning by 2030. Of this, we expect: 50% to be aligned by 2030 / 20% to be aligning by 2030.
Engagement threshold target
90% of financed emissions in material sectors are subject to direct or collective engagement and stewardship actions by 2030.
Allocation to climate solutions target
50% of AUM to be allocated to climate solutions by 2025.
GHG scopes included:
InfraRed has estimated the portfolio Scope 1, 2 and 3 emissions for the baseline year of 2019 in accordance with the Greenhouse Gas Protocol and Partnership for Carbon Accounting Financials (“PCAF”) methodologies. This was conducted via
a bottom-up exercise where business activity data was requested from the portfolio companies to estimate the corresponding
emissions. Whilst scope 3 emissions to a large extent are based on proxies, it was deemed important to include these emissions due to relative materiality. InfraRed will continue to engage with portfolio companies to improve the accuracy and
reliability of emissions measurement.
Methodology:
Net Zero Investment Framework
Scenario(s):
1.5°C
Additional information
Proportion of AUM committed:
The net zero commitment extends to active infrastructure funds under management. Funds where assets are currently being sold or transferred in line with the original fund strategy have been excluded from the commitment. While we will continue to monitor these assets to ensure that they are managed responsibly up to the point of exit, we cannot impose binding obligations on these assets or on the future owners of these assets.
Policy on coal and other fossil fuel investments:
Yes. InfraRed does not hold any coal or oil-based assets in its portfolio. Since 2020, InfraRed has formally excluded, via its Exclusion Policy, the direct or indirect investment in coal, oil and gas unless such investments are supporting the energy
transition/decarbonisation of energy systems; examples might be investing in a fossil fuel asset to repurpose it to deliver real
emissions reductions (e.g., through efficiency measures) or investing in an asset which has a clear and compelling business
plan to align to net zero.
Further information:
InfraRed’s 2022 Sustainability Report