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Montanaro Asset Management

Montanaro Asset Management is an investment management firm focused on small and midcap companies globally with an office in London. It joined the Net Zero Asset Managers Initiative on 29 March 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

70% of total AUM (USD $3.9 billion)

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





Portfolio coverage target

50% achieving science-based targets by 2030


Portfolio decarbonisation reference target

7% emissions reduction year-on-year, derived from the IPCC special report on global warming

50% emissions reduction by 2030


Portfolio coverage target

100% achieving science-based targets by 2040

GHG scopes included:

The targets cover Scope 1 and 2 emissions and aims to include Scope 3 once data is sufficiently available. Data disclosure continues to be an issue in small and mid-cap markets.


Net Zero Investment Framework

Science Based Target initiative for Financial Institutions


Our approach is in line with a 7% emission reduction year-on-year is derived from the P2 model in the IPCC special report on global warming of 1.

Additional information

Proportion of AUM committed:

Our target covers Montanaro’s open ended funds (both Ireland and UK domiciled). We are working with the asset owners of our segregated accounts to understand their own approaches to net zero carbon. We also manage two Investment Trusts and a net zero carbon commitment is something that is being discussed by the respective Investment Trust Boards.

Policy on coal and other fossil fuel investments:

We have the following restrictions across 100% of our AUM:

• Exclusion of companies involved in the exploration and production of coal, oil and gas.

• Ban encompasses both onshore and offshore extraction.

• We also ban investment in fossil fuel refinement companies.

Further information:

Target setting: NZIF is used to set an annual 7% emissions reduction target across our portfolios. The 7% annual reduction target will apply across each of our in-scope portfolios.

SBTi coverage target: 50% of designated AUM achieving SBT coverage by 2030 and then 100% by 2040. SBTs are recognised when a target is set, rather than when a commitment to set a SBT is made.

Our direct allocation to climate solutions comes via our impact strategy, the Better World Fund. The fund utilises themes to select companies that are contributing to environmental and societal solutions. Two of these themes relate to the climate change crisis. These themes are green economy and environmental protection. Allocation to companies contributing to these themes is currently 36%.

Montanaro’s net zero report and ESG handbook.