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Massachusetts Financial Services

Massachusetts Financial Services is an American-based global investment management firm with 14 offices globally across the Americas, Europe, Asia, Australia and New Zealand, and the Middle East. It joined the Net Zero Asset Managers Initiative on 6 July 2021 and its initial target disclosure was published on 1 May 2022.

Initial Target Disclosure: May 2022

Percentage of assets covered by the Net Zero Asset Managers Commitment Statement

90% of total AUM (USD $572 billion)

Information on interim target(s) covering the proportion of assets to be managed in line with net zero



Portfolio coverage baseline

We do not yet have sufficient information to full evaluate our baseline for aligned or achieving net zero. However, we estimate that approximately 33% of our in scope AUM has, or has committed to set, a science-based target and therefore may be deemed aligning once we have reviewed plans and reporting.



Portfolio coverage target

90% of in scope AUM is considered net zero aligned or aligning


Portfolio coverage target

100% of in scope AUM is considered net zero aligned. Our aim is to have 100% of AUM in scope by this date.

2050 – 100% of AUM is considered ‘achieving net zero’

GHG scopes included:

Financed emissions will include Scope 1 and 2 emissions and Scope 3 to the extent they are material to the sector. This is in reference to SBTi requirements, and to the extent possible based on the quality of available data. We expect data quality on Scope 3 to improve enabling us to provide enhanced reporting over time.


Net Zero Investment Framework


In line with good practice, we seek to utilise a consensus of IPCC-reviewed 1.5°C no/low overshoot scenarios. Our reference pathways will primarily be the IEA Net Zero by 2050 scenario and the sector pathways of the SBTi. SBTi scenarios are drawn primarily from the Integrated Assessment Modelling Consortium (IAMC) and the IEA. Additionally, our data providers offer different climate scenarios as part of their climate data sets.

Additional information

Proportion of AUM committed:

We need to better understand net zero pathways for certain asset classes and instrument types, including but not limited to: sovereign, municipal, other non-corporate fixed income issuers, and derivatives before committing 100% of our AUM. We seek to expand the AUM coverage by 2025. The target assumes no material change in the mix of our AUM.

Policy on coal and other fossil fuel investments:

We have not adopted such a policy; however, we consider the risk of stranding of fossil fuel assets when reviewing issuers. Coal and other fossil fuel related holdings are within the scope of the AUM coverage of our NZAM targets set out above as well as our proactive engagement strategy.

Further information:

Target setting: It is engagement and investee company alignment with net zero that is the core of our strategy for net zero alignment and so we have set a corresponding target on portfolio coverage. While we believe our approach, if successful, will achieve results aligned with other target types, we have elected not to set such targets at this time.

We believe a portfolio coverage target using an engagement-based approach allows us to maximize the proportion of in-scope AUM on the path to achieving net zero, while being aligned with our overall investment philosophy and our fiduciary responsibilities to our clients. We believe this approach reflects the aspiration and ambition of the NZAM initiative to achieve real world emissions reduction in our portfolios.

Importantly, we do not intend to use divestment or purchase “green” companies solely for the purpose of achieving our net zero goals, as such an approach neither reduces real world emissions nor aligns with our fiduciary obligations to our clients. We may, however, elect to selectively divest from an investee company, if we believe an investee company is not making sufficient progress toward addressing climate risk in their operations, which could impact our long-term investment thesis for holding such company. We may also elect to invest in companies that aid climate change mitigation and adaptation if we believe this to be in the best interest of our clients and in line with our fiduciary duty.

We will report and monitor investee company GHG emissions over time and aim to report on the financed emissions equivalent of our portfolio coverage target and performance against it. We aim to monitor and report on portfolio decarbonization and allocation to climate solutions. The targets set will be reviewed annually.

MFS Climate Manifesto and Sustainable Investing Annual Report