Nikko Asset Management Co. Ltd.
Nikko Asset Management is one of Asia’s largest asset managers, providing high-conviction, active fund management across a range of equity, fixed income, multi-asset and alternative strategies. Nikko 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
43% of total AUM (USD $115.68 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio decarbonisation reference baseline
84.7tCO2e/ $mn invested
Target(s):
Portfolio decarbonisation reference target
–50%
GHG scopes included:
We currently include Scope 1 and 2 emissions. To the extent possible, we will include material Scope 3 emissions when data (especially in the regions we invest in) becomes more readily available
Methodology:
Net Zero Investment Framework
Scenario(s):
We use the IPCC scenario as a basis of our target.
Additional information
Proportion of AUM committed:
Although climate change considerations are integrated across asset classes, we are commencing our journey towards net zero targets from our equity holdings, as this is the largest portion of our AUM and as the equity analysis methodologies have been more established, compared to other assets such as fixed income (especially sovereign debt). The data coverage also tends to be better for equities. We understand there are recent developments in this space, and we will be looking to apply these methodologies and data as it becomes more widely applicable to incrementally add further AUM to our net zero targets.
Policy on coal and other fossil fuel investments:
Nikko AM is considering a policy on coal and fossil fuel investment.
Further information:
Currently our target is not verified by an external third party, however we are committed to share details about our targets and we plan to achieve it in annual disclosures (TCFD report). A third party verification might be considered in the future.