New Forests Pty Ltd
New Forests is a global investment manager of nature-based real assets and natural capital strategies. New Forests joined the Net Zero Asset Managers Initiative in December 2020 and made its Initial Target Disclosure in May 2023.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
51% of total AUM (USD $3.16 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio coverage baseline
0% of AUM in material sectors is considered net zero, aligned, or aligning.
Engagement threshold baseline
0% of financed emissions in material sectors were net zero or aligned with a net zero by 2050 pathway as at 30 June 2020.
0% of financed emissions in material sectors were under engagement as at 30 June 2020.
Target(s):
Portfolio coverage target
By 2030, 50% of New Forests AUM in comingled funds will be either achieving net zero or aligned with a net zero by 2050 pathway. By 2040, 100% of New Forests AUM in comingled funds will be either achieving net zero or aligned with a net zero by 2050 pathway.
Engagement threshold target
All of New Forests financed emissions are in material sectors. By the end of 2024, 9.6% of New Forests’ total financed emissions (15% of comingled funds financed emissions) will be net zero or aligned with a net zero by 2050 pathway. By the end of 2030, consistent with our portfolio coverage target, 42% of total financed emissions (68% of commingled funds financed emissions) will be net zero or aligned with a net zero by 2050 pathway, based on FY22 data.
Additionally, by the end of 2024, 100% of New Forests’ total financed emissions in material sectors (equivalent to 100% of financed emissions from all New Forests AUM) will be the subject of direct engagement or stewardship actions. Engagement and stewardship actions to be undertaken with assets in material sectors (all assets) include:
- An assessment of performance against the alignment criteria.
- Preparation of a comprehensive greenhouse gas emissions inventory. This engagement will support the achievement of our portfolio coverage targets and also our goal to expand our target in future to include co-investment and separately managed accounts.
GHG scopes included:
100% of scope 1 and 2 emissions and 27% of scope 3 emissions from financed emissions in comingled funds. Scope 3 emissions initially included in the target are those associated with activities up to the domestic point of sale and are included on the basis that New Forests has an appropriate level of influence over these activities. Additional scope 3 emissions will be assessed for inclusion in the future.
New Forests has a breakdown of scope 3 emissions sources from comingled funds, as well as a timeline and plan for phasing in additional scope 3 emission sources over time. New Forests also calculates carbon removals from all assets under management and will explore the inclusion of removals in future target(s).
Methodology:
Net Zero Investment Framework
Scenario(s):
IPCC P2 1.5 C pathway.
Additional information
Proportion of AUM committed:
This value is less than 100% as it only includes the AUM associated with assets in comingled funds, as these are the assets over which New Forests has some control. The target excludes AUM in co-investments and separately managed accounts as they are controlled by the client. We will work with the clients of these investments to increase the coverage of assets managed in line with net zero in the future.
Policy on coal and other fossil fuel investments:
New Forests does not invest in coal or other fossil fuels. Any fossil fuel investments are outside our documented investment mandates i.e. we use constrained mandates not unconstrained.
Further information:
New Forests Carbon Action Plan is included in New Forests Climate Disclosure Report