Sustainable Development Capital LLP
Sustainable Development Capital LLP (“SDCL”) is a specialist investment firm focusing on energy efficiency, on-site generation and clean energy projects. They joined the Net Zero Asset Managers Initiative in November 2022 and made their Initial Target Disclosure in January 2024.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
100% of total AUM (USD $2.2 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio coverage baseline
As the net zero commitment commenced in 2021, there is insufficient information to provide an assessment of the % of financed emissions in material sectors that are net zero, aligned to net zero, or aligning to net zero in 2021. Based on the available information, it is estimated that 0% of the company’s portfolio was net zero, aligned to net zero, or aligning to net zero in 2021.
Engagement threshold baseline
Baseline performance: financed emissions under engagement
SDCL regularly engages with its assets on energy efficiency initiatives and specifically on identifying accretive projects that improve their efficiency and consequently reduce their emissions. That said, this work has not been formally tracked as part of SDCL’s net zero commitment and therefore the firm is setting a baseline of 0%.
Portfolio coverage target
Aiming for 100% of SDCL’s financed emissions in material sectors to be considered net zero, aligned to net zero, or aligning to net zero by 2030. Of this, SDCL is aiming for 50% of its financed emissions in material sectors to be aligned to net zero by 2030.
Engagement threshold target
Aiming for 100% of SDCL’s financed emissions in material sectors to be subject to direct or collective engagement and stewardship actions by 2030.
Portfolio coverage target
Aiming for 100% of SDCL’s financed emissions in material sectors to be considered net zero or aligned to net zero by 2040.
GHG scopes included:
SDCL’s net zero targets cover the Scope 1 and 2 greenhouse gas emissions as they relate to the energy services provided by its AUM. SDCL will incorporate material Scope 3 emissions into its net zero targets where appropriate. SDCL’s AUM reports on Scope 1, 2 and material Scope 3 emissions through regular data requests. SDCL reports on those greenhouse gas emissions in annual reports and in accordance with the GHG Protocol operational control approach.
Net Zero Investment Framework
SDCL’s targets will align with the recommendations from the IPCC special report on global warming of 1.5°C, which was first published in October 2018.
Proportion of AUM committed:
SDCL will engage with 100% of its AUM on reaching net zero, but its implementation strategy and engagement approach will differ based on the characteristics of those assets.
As SDCL’s AUM evolves with new strategies and funds, the implementation of its net zero targets will reflect those changes.
Policy on coal and other fossil fuel investments:
SDCL does not have a specific fossil fuel exclusion policy and aims to invest in best available technologies that provide low-carbon and efficient energy services to its customer.