Russell Investments
Russell Investments is a global investment management firm headquartered in Seattle, Washington with 19 offices globally across the Americas, Europe and the Middle East, and Asia-Pacific. It joined the Net Zero Asset Managers Initiative on 20 April 2021 and its initial target disclosure was published on 1 May 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
25% of total AUM (USD $57.4 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio coverage baseline
15% of AUM in material sectors is considered net zero, aligned to net zero or aligning to net zero WACI: 234tCO2e/USD mn revenue
Engagement threshold baseline
4% of financed emissions in material sectors are net zero or aligned and 65% of financed emissions in material sectors are either aligned or subject to direct or collective engagement and stewardship actions
Target(s):
Portfolio coverage target
25% of AUM in material sectors to be net zero, aligned to net zero or aligning to net zero by 2025
Portfolio decarbonisation reference target
Reduce Weighted Average Carbon Intensity (WACI) by 50% by 2030
Engagement threshold target
Target financed emissions in material sectors are net zero, aligned to net zero, aligning to net zero or subject to engagement as follows: 70% by 2025 and 90% by 2030
GHG scopes included:
Our target covers Scope 1 and 2 emissions with Scope 3 to be phased in as data quality and availability improves.
Methodology:
Net Zero Investment Framework
Scenario(s):
Russell Investments referenced the IPCC SR1.5 global emissions pathway scenarios that limit global warming to 1.5°C by 2050 with no or limited overshoot, to establish the target ‘50% reduction in emission intensity by 2030’
Additional information
Proportion of AUM committed:
Our approach is client and solutions led and we are focused on setting realistic and achievable targets. Our initial efforts are centred on netzero committed clients, sustainable solutions, and regions where transition alignment is a client objective. For instance, two-thirds of our EMEA-domiciled funds are included in our initial target group. Although this bottom-up approach leads to conservative interim targets, we are fully committed to working with clients to achieve our collective net zero commitments. Furthermore, we only included equities and corporate debt in our initial targets after assessing that these asset class methodologies were the most robust. Other methodologies & data availability will continue to improve, and we will aspire to phase in additional asset classes in the coming years.
Policy on coal and other fossil fuel investments:
Our climate action plan includes a phase out of thermal coal by 2030 in OECD countries and by 2040 in the rest of the world for net zero aligned investments. Russell Investments’ Global Exclusions Committee will continue to assess our policy on coal and other fossil fuels over time, incorporating the latest climate science, considerations for a just transition, while acknowledging a practical need for energy security.
Further information:
More information on responsible investing at Russell Investments.