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T. Rowe Price Group, Inc.

T. Rowe Price is an asset management firm focused on delivering global investment management excellence and retirement services that investors can rely on—now, and over the long term. T. Rowe Price joined the Net Zero Asset Managers Initiative in April 2022 and made its Initial Target Disclosure in April 2023.

Initial Target Disclosure: April 2023

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

59% of total AUM (USD $751 billion)

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



Portfolio coverage baseline

Net zero alignment data cover all sectors and are based on our internal net zero alignment tracking tool. 2.1% Achieved, 13.0% Aligned, 2.1% Aligning, 36.2% Committed, 35.9% Not Aligned, 9.2% Not covered, 1.6% Cash.



Portfolio coverage target

50% of committed AUM to be considered net zero or aligned by 2030. 100% of committed AUM to be considered net zero or aligned by 2040.

GHG scopes included:

While our portfolio coverage targets are currently based on scope 1 and 2 emissions, we make efforts to improve the coverage and quality of scope 3 emissions. We track progress in our proprietary ESG rating system and include scope 3 emissions in the quarterly carbon reports we publish per strategy.


Net Zero Investment Framework


Consistent with our portfolio coverage approach, we assess each security’s respective net zero targets, their credibility and the progress made towards achieving them. We check that the chosen pathways align with 1.5C of warming, that they use an absolute contraction approach or a sectoral decarbonization approach. We also track if targets have been validated by the Science Based Target Initiative.

Additional information

Proportion of AUM committed:

The assets committed reflect strategies predominantly invested in developed market corporate securities with adequate emissions data available to make an informed net zero assessment. The strategies not committed fall into four categories: strategies invested in corporate securities that lack adequate emissions data (min. 75%) to make an informed net zero assessment; strategies that  predominantly invest in emerging markets or specific sectors lacking realistic pathways to achieve net zero by 2050; strategies that predominantly invest in asset classes lacking a net zero methodology (sovereign, securitized and municipal bonds); and strategies with short-term investment styles (cash funds, short, ultra-short, and low duration strategies) or strategies that do not have net zero as a consideration within their investment process (quantitative and index funds).

Policy on coal and other fossil fuel investments:

We typically do not apply blanket or category-specific exclusions without a client mandate or as specified in fund documentation. We prefer an active climate stewardship approach encouraging issuers to adopt a thoughtful, robust transition to net zero. We believe: (1) divesting from an asset does not reduce real world emissions, systematic risk or uncertainty; (2) divesting may be inappropriate for an investment product with a sole mandate to deliver financial performance, as it limits our ability to navigate the transition for our clients’ maximum benefit; and (3) divesting may fail to account for future technological advances or shifts in business strategy that enable a high emitter today to flourish in a future net zero world (i.e. acquisition may allow for easier decarbonization route, application of carbon capture and storage, etc.). We believe this is consistent with our fiduciary duty and NZAM’s ambition of achieving real world emission reductions.

Further information:

We make this commitment on the understanding that it is the role of governments to establish clear, coordinated, and stable policies and regulations to enable markets to transition to net zero in an orderly fashion.

As an asset manager we are a fiduciary. We view climate change considerations through a fiduciary lens, with a focus on financial performance and risk management. Committed assets with a sole mandate to deliver financial performance are not bound to any net zero objectives.

We are committed to help clients determine how climate impacts their portfolios and find appropriate solutions. Some clients will have investment objectives that extend beyond financial returns alone. Mandates with specific climate or related objectives are included in the commitment and represent less than 1% of total AUM. We expect this number to increase over time subject to client demand.

Please see our investment policy on climate change and our approach to net zero.

Our commitment figures are unaudited and may be subject to change.