Mackenzie Investments is a leading investment management firm providing investment advisory and related services to retail and institutional clients. Mackenzie joined the Net Zero Asset Managers Initiative in October 2021 and made its Initial Target Disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
24% of total AUM (USD $40 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio coverage baseline
Approx. 30% of the AUM initially committed to be aligning with net zero has committed to SBTi, as of July 31, 2022. This is equivalent to approximately 25% of the financed scope 1 and 2 emissions.
Engagement threshold baseline
Approximately 25% of the financed emissions of our initially committed assets are committed to SBTi, as of July 31 2022.
Approximately 85% of the financed emissions of the initially committed assets are subject to either direct or industry collaborative engagement programs. For Mackenzie’s overall equity exposure, we are currently engaging with 70% of the financed emissions.
Portfolio coverage target
By 2030, we expect that 50% of our initially committed assets have validated science based targets, through the Science Based Targets initiative (SBTi) or equivalent.
Engagement threshold target
At the core of our commitment is Mackenzie’s prioritization of net zero engagements with 100 companies that contribute currently to 70% of Mackenzie’s aggregated financed emissions in listed equities. We believe that prioritizing these companies for setting science-based targets and transition plans will set a strong foundation for the broader economy to align with net zero, especially in markets where we have a large footprint such as Canada and the United States. We will review our priorities for net zero engagement on a regular basis to target the objective to have 50% of our initially committed assets to have validated science based targets, through the Science Based Targets initiative (SBTi) or equivalent, by 2030.
To remain authentic and pragmatic with our net zero ambitions, we commit to frequent reviews, transparency to our investors and stakeholders, and increasing our ambitions as data, standards, and regulations advance. We want to acknowledge that we can only succeed if governments and policymakers follow through on their own commitments to ensure the objectives of the Paris Agreement are met, including increasing the ambition of their Nationally Determined Contributions.
GHG scopes included:
In setting science-based targets, investment holdings will need to follow criteria for covering scope 1 and 2 emissions, as well as scope 3 emissions, as defined by frameworks such as the Science Based Targets initiative, or equivalent.
Net Zero Investment Framework
We will measure investment holdings’ emissions reduction pathways against 1.5°C science-based pathways, such as those offered by SBTi.
Proportion of AUM committed:
As stewards of our clients’ capital, Mackenzie is committed to addressing risks and opportunities associated with climate change across its investments. Our initial target includes:
- Investment strategies (whole accounts) invested in equities with above average contributions to Mackenzie’s overall financed equity emissions, where we prioritize stewardship to address our fair share of global decarbonization efforts, and
- Sustainable investment strategies (whole accounts) invested in equities where sustainability takes priority in the investment objective
These represent 36% of Mackenzie’s listed equity assets. Other asset classes or investment strategies were not included at this time due to lack of data coverage, lack of adequate target methodologies, or insufficient standards or regulations. Mackenzie actively collaborates with asset owner clients, industry networks, policymakers, external data providers, and investment holdings to enable a higher proportion of investment strategies to be managed in line with net zero over time.
Policy on coal and other fossil fuel investments:
Mackenzie applies a holistic approach to the energy transition focusing on decarbonization, energy security and energy affordability in order to enable a just transition. We prioritize active stewardship as the tool to enable an inclusive transition to net zero. Mackenzie’s activities in relation to coal and other fossil fuel exposures include:
– Engagement with a focus list of 100 companies that include fossil fuel companies. Specifically, we engage with companies that derive revenue from coal and encourage them to phase out of thermal coal, considering a company’s geographical and regulatory context
– Support Canadian innovations that bring solutions to high emitting sectors and industries
– Support a Canadian taxonomy and standards that steer capital to green and transitionary activities.
Given the current energy crisis, we are planning to revisit the introduction of a more formal thermal coal policy in the OECD countries in our next review of net zero ambitions.
We recognize that the journey to achieve net zero will bring with it many challenges but will also present many opportunities, and as investors and stewards of capital we need to consider the needs of all our stakeholders in this journey with priority given to our clients. As such, our net zero journey will consider the decarbonization of material sectors alongside investments in future sources of energy and the innovations that need to occur to develop them.
As government taxonomies advance and we further our capabilities, we intend to set climate solutions targets to increase our capital allocation to companies or activities that are enabling the transition to a low carbon economy. To date we have taken the following steps:
- Built internal investment and sustainability capabilities resulting in the growth of sustainable investment funds to CAD 4.3B AUM, as of December 31, 2021, with approximately 50% of those assets being allocated to climate solutions
- Increased allocation to ESG-labelled debt from CAD 378M in 2019 to CAD 2.5B in 2021 with over 60% being allocated to green bonds. We also encouraged the issuance of more than CAD 1 billion in sustainable debt in 2021 through reverse interest engagements and aim to continue doing this annually
- Trained over 5,000 Canadian financial professionals on the risks and opportunities associated with the energy transition so they may capitalize on the opportunities for their clients
- Prioritizing Canadian innovation with strategic partnerships, through institutions such as Elevate, to support Canada’s transition by raising awareness for capital needed to transition to and to lead in a low carbon future