Inherent Group, LP
Inherent Group is a family office of value investors focused on long-term investment opportunities as well as opportunistic dislocations headquartered in New York. It joined the Net Zero Asset Managers Initiative on 11 December 2020 and its initial target disclosure was published on 1 November 2021.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
74% of total AUM (USD $0.742 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio decarbonisation reference baseline
For each Fund, the applicable “Baseline” in the Baseline Year is defined as follows:
1. Cr Fund Baseline: Barclays Capital High Yield index (“HY”): 173 t CO2e/$mn invested
2. Cr/Eq Fund Baseline: Russell 2000 (weighted 2/3) and HY (weighted 1/3): 101 t CO2e/$mn invested
Accordingly, the “50% Targets” for the Funds are as follows:
1. Cr Fund: 86 t CO2e/$mn invested
2. Cr/Eq Fund: 50 t CO2e/$mn invested
Target(s):
Portfolio decarbonisation reference target
By 31 December 2030 each Fund’s annual t CO2e/$mn invested is equal to or less than one half (1/2) of that of the applicable baseline (as defined below) in the baseline year
GHG scopes included:
At this time, all CO2e intensity figures cited herein cover only Scope 1 & 2. IG carefully evaluated material Scope 3 data available for its funds and the baselines and determined that such data is, at present, neither consistently available nor calculated in a comparable and transparent manner. IG intends to add Scope 3 data to its analysis when such challenges are sufficiently addressed, which will require significant updates to the figures cited herein, including the 50% Targets.
Methodology:
Net Zero Investment Framework
Scenario(s):
Based on the recommendations of the Paris Aligned Investment Initiative
Additional information
Proportion of AUM committed:
The 74% of total AUM represents AUM across two funds invested in publicly traded securities: a credit fund (“Cr Fund”) and a credit & equity fund (“Cr/Eq Fund”; each a “Fund” and together, the “Funds”). IG is initially focused on the Funds based on their size and CO2-equivalent (“CO2e”) data availability for the Funds and their relevant baselines. Substantially all of the remainder of IG’s AUM is invested in various private equity strategies. IG currently intends to include 100% of AUM in the 50% Targets by 2030 once data availability and quality improves for investments outside the Funds.
Policy on coal and other fossil fuel investments:
Yes. IG has adopted, in substance, the PAII statement on thermal coal, associated infrastructure, and tar sands.
Important notes: This document is not an offer for any product or service. IG’s responses herein represent the firm’s current intent as a signatory to the Net Zero Asset Managers initiative. The information presented herein, especially the CO2e data and calculations, is derived from multiple data sources and relies upon numerous assumptions. Although IG currently intends to revise the figures cited herein as better information becomes available, IG does not undertake to do so, the responses presented herein are for discussion purposes only, the figures contained herein may be materially inaccurate, and all information presented herein is subject to change without notice. In the event of any conflict between the offering memorandum (“OM”) of a Fund and any applicable information presented herein, the OM shall control.
Further information:
Target setting: IG considers each Fund to be similar in important respects to its respective baseline, although each Fund is managed in an ESG-integrated and climate-aware manner, unlike the baselines. Accordingly, IG believes that the 50% targets relative to the baselines are representative of IG’s fair share of global CO2e reductions.
Alignment assessment and engagement: Furthermore, as related to the Net Zero Asset Managers initiative, by 31 December 21, IG intends to engage with 100% of the issuers held in the Funds to encourage their rapid adoption of net zero targets and reporting. IG works closely with a subset of its portfolio companies on strategic and ESG matters, including their net zero strategies. IG is developing plans for various CO2e-neutral investment products. IG has adopted exclusions on investing in certain sectors. IG invests in a wide range of climate solutions-oriented companies in the public and private markets and continues to explore associated investment strategies. At present, IG intends to reach net zero emissions across 100% of its AUM by 2040.
Additional information is available in IG’s ESG Policy.