Macquarie Asset Management
Macquarie Asset Management is a global asset manager with 83 offices globally across Australia and New Zealand, Europe, the Middle East and Africa, Asia, and the Americas. It joined the Net Zero Asset Managers Initiative on 29 March 2021 and its initial target disclosure was published on 1 May 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
43% of total AUM (USD $229.6 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio coverage baseline
Private markets: As our net zero commitment and tracking of assets commenced in 2020, we do not have sufficient information to provide an assessment of the % of assets which were aligned or aligning in 2019. Based on the available information and the level of maturity of the industry we are estimating that 0% of private markets was aligned or aligning to net zero in 2019.
Listed equity and corporate bond investments: 6% of portfolio holdings were aligned or aligning with net zero commitments as of 2019.
Engagement threshold baseline
Engagement target: MAM’s formal net zero programmes including company engagement within our public investments and private markets businesses were introduced in 2020. 2019 Baseline – 0%.
Target(s):
Portfolio coverage target
Private markets: By 2030, we aim to have 100% of our portfolio companies to be aligned or aligning with net zero using the Paris Aligned Investment Initiative Net Zero Infrastructure and Real Estate methodology.
Listed equity and corporate bond investments: We are targeting 50% of in-scope portfolio holdings to be aligned or aligning to a net zero framework by 2030, by setting net zero commitments as recognised by a well-accepted net zero methodology such as the Science Based Target initiative or the Transition Pathways Initiative.
Portfolio decarbonisation reference target
In line with the NZIF methodology, we are targeting that by 2030 at least 90% of our financed emissions in material sectors are either assessed as net zero, aligned or aligning with a zero pathway or subject to engagement either directly or as part of a collaborative effort.
Engagement threshold target
The portfolio coverage targets set for listed equity and corporate bonds are anticipated to lead to emissions intensity reduction of at least 50% by the year 2030 in these asset classes.
GHG scopes included:
Scope 1 and 2 portfolio emissions. We continue to work towards improving scope 3 data availability and will include this over time.
Methodology:
Net Zero Investment Framework
Scenario(s):
1.5°C
Additional information
Proportion of AUM committed:
MAM currently committed USD 229.6 billion to be managed in line with net zero including 100% of our infrastructure and agriculture portfolio and more than 80% of our real estate portfolio. We intend to increase our committed AUM over time. AUM not yet committed includes asset classes where actions that can influence change (proxy voting and engagements) are not yet widely available, asset classes where companies currently have limited capacity to adopt a net zero framework, passively managed portfolios that must be aligned to an external benchmark and select segregated mandates where we will seek explicit client approval.
We intend to deploy aspects of our net zero framework across these asset classes to the extent possible. We will continue to engage and collaborate with peers and industry bodies to improve methodologies and data availability to enable their inclusion in the future.
Policy on coal and other fossil fuel investments:
Since 2019, our private markets businesses have been subject to a policy restricting investments in businesses with exposure to coal: no further investments will be made in standalone coal fired generation or in any asset for which more than 25% revenue is dependent on coal. For businesses with a smaller exposure to coal, the investment case must incorporate a transition away from that dependency.
For listed equity and corporate bond investments, we will commit to phasing out our investments in thermal coal activities (specifically thermal coal mining and coal-fired power generation). By 2030, any investee companies with residual exposure to these activities must have a net zero target in place in line with an acceptable framework.
Further information:
Target setting: While no formal target has been set, MAM is aiming to increase the proportion of AUM invested in climate solutions. As of 30 September 2021, 7.9% of our private markets AUM constituted renewable energy assets (USD 12.6 billion).