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.
100% of total AUM
initially committed to be managed in line with net zero
USD $0.210 billion
currently committed to be managed in line with net zero
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.