Redwood Grove Capital
Redwood Grove Capital manages a concentrated, value oriented equity fund. Redwood Grove joined the Net Zero Asset Managers Initiative in December 2021 and made their Initial Target Disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
100% of total AUM (USD $0.210 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio coverage baseline
93% of AUM in material sectors is considered net zero, aligned, or aligning
Portfolio decarbonisation reference baseline
8821 tCO2e
1675 tCO2e/ $mn invested
Engagement threshold baseline
98% of financed emissions in material sectors are net zero or aligned.
12% of financed emissions in material sectors are under engagement.
Allocation to climate solutions baseline
23% of AUM allocated to climate solutions.
Target(s):
Portfolio coverage target
95% of AUM in material sectors is considered net zero, aligned, or aligning by 2025; 100% by 2030.
Portfolio decarbonisation reference target
-50% or 4,411 tCO2e
-50% or 838 tCO2e
Engagement threshold target
100% of financed emissions in material sectors will be net zero or aligned actions by 2025.
50% of financed emissions in material sectors will be subject to direct or collective engagement by 2025.
Allocation to climate solutions target
No less than 10% of AUM will be allocated to climate solutions, as market valuations or as our portfolio decarbonization targets will allow.
GHG scopes included:
Scope 1 + scope 2 are included in all calculations.
Scope 3 not included at this point as scope 3 data is either not available or not reliable.
Methodology:
Net Zero Investment Framework
Scenario(s):
As our portfolio is comprised of companies that are not in the material sectors, and there are no sector available 1.5C scenarios recommended by PAII for the 2 banks that we have in our portfolio, we have used a point in time emissions reduction target to achieve a net zero portfolio.
Additional information
Policy on coal and other fossil fuel investments:
No. Our fund strategy focuses on opportunities created by the economic impact from climate change and therefore we generally do not invest in coal and other fossil fuel companies.