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Pzena Investment Management

Pzena Investment Management is a global investment management firm, headquartered in New York City. They joined the Net Zero Asset Managers Initiative in November 2022 and made their Initial Target Disclosure in March 2024.

Initial Target Disclosure: March 2024

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

2.6% of total AUM (USD $1.60 billion)

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



Portfolio decarbonisation reference baseline

N/A – based on benchmark index levels for 2019


Engagement threshold baseline

Currently only one company, Enel, weighted at 0.4% in the portfolio is fully aligned to Net Zero.

100% of financed emission related to high impact companies are currently under active engagement efforts



Portfolio decarbonisation reference target

Below details how we manage to achieve a Net Zero trajectory for our GVC strategy:

Portfolio Target: Carbon intensity (scope 1 &2) that is in line/below MSCI ACWI Climate Change Index. This index builds in decarbonization of 7% annually, such that it is mathematically aligned to a Net Zero by 2050.

ESG Integration: Our investment approach is based on a bottom-up, research-driven stock selection process that fully integrates ESG considerations, requiring a focus on the long-term sustainability of business models. Financially material ESG considerations are analyzed internally, discussed with company management and industry experts, and monitored. Once an investment has been made, we continue to engage management on an ongoing basis.

Quantitative Exclusions:
Companies that generate >10% of revenues from thermal coal based power generation or from the mining of thermal coal and its sale to external parties. Companies that generate >10% of revenues from tar sands extraction

Qualitative Net Zero Assessment:
Assessing the credibility of Net Zero plans for designated ‘high impact’ companies (defined as in the top 20% of carbon emissions intensity for the global strategies’ investment universe). We provide ongoing reporting of progress at companies designated as not yet aligned to a credible Net Zero pathway.

Engagement threshold

Engagement is measured on a case-by- case basis and is ongoing.

We will continue to engage high impact companies to help encourage them to move to aligned or achieving Net Zero by 2050.

We will continue to engage with all high impact companies in the portfolio.

Engagement has always been central to our investment process. We engage on climate transition issues with all companies across our portfolios if it is a financially material risk or opportunity to the business. While our goal is to see all high impact companies in GVC achieve net zero by 2050, we acknowledge the inherent uncertainty in the trajectory and timeframe for achieving Net Zero among different industries and regions. We continue to engage with all high impact companies and will provide enhanced reporting and disclosure detailing where a company is on its Net Zero trajectory for clients invested in this strategy.

GHG scopes included:

When assessing a company’s net zero pathway, we consider scope 1 and 2 emissions because they are within direct company control and can be tied back to company financials. Often, they are more accurately measured and reported. While Scope 3 can be the largest source of company emissions, we don’t think this is a decision-useful metric for the following reasons:

1. outside direct company control

2. relies heavily on estimates

3. involves double and triple counting

4. subject to inconsistent reporting and accounting

5. cannot tie back to company financials


Net Zero Investment Framework


Our target pathway aligns carbon intensity (scope 1&2) at or below the MSCI ACWI Climate Change Index.

Additional information

Proportion of AUM committed:

We market our Global Value Climate (GVC) strategy which, in addition to our ESG integrated approach, involves a thematic focus on climate and some exclusions.

While clients express interest in the GVC strategy, we have found clients may prefer to customize their own mandates with us. We manage strategies with decarbonization objectives, as directed by clients. Because those strategies aren’t explicitly managed to NZAMi, we don’t include those in our stated aligned-AUM. AUM committed to the NZAMi is driven by client demand which may vary over time.

Policy on coal and other fossil fuel investments:

For the Global Value Climate portfolio specifically, we have implemented the above parameters around fossil fuels. Currently, we have no plans to develop a firm-wide policy to implement more broadly across our strategies. We can implement restrictions if directed by a client. For example, some of our clients impose company or activity-specific restrictions on their portfolios.

Further information: