Terra Alpha Investments LLC
Terra Alpha Investments is an employee and investor-owned investment management firm headquartered in Washington, D.C. with an office in Los Angeles, California. It joined the Net Zero Asset Managers Initiative on 29 March 2021 and its initial target disclosure was published on 1 November 2021.
100% of total AUM
initially committed to be managed in line with net zero
USD $0.12 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
Portfolio coverage baseline
43% of invested value with set Science Based Targets as of 31 December 2020.
Portfolio coverage target
Achieve Science Based Targets in Terra Alpha Investments LLC equities portfolios by 2025 from a 2020 base year. Terra Alpha Investments commits that 75% of its equities portfolios by invested value will have set Science Based Targets by 2025.
Terra Alpha’s portfolio targets cover 100% of its total investment activities by AUM.
Science Based Target initiative for Financial Institutions
This target covers 100% of Terra Alpha’s Scope 3 financed emissions.
Policy on coal and other fossil fuel investments:
Yes. Our policy applies to 100% of AUM and can be found on page 8 of “Our Commitment to a Net Zero Emissions Portfolio” (September 2021): https://terraalphainvestments.com/wp-content/ uploads/2021/09/NZAM-Targets-Overview_Fall-2021-1.pdf
Target setting: As an active manager that invests only in public equities, the vast majority of our GHG emissions footprint comes from “financed emissions” via our common or preferred stock investments. The most impactful way to reduce our footprint is thus to engage with portfolio companies on their own emissions reduction initiatives–and we consider the Science Based Targets Initiative (SBTi) one of the best available verification options for our portfolio companies’ emissions reduction targets. We have therefore chosen to follow the Science Based Targets initiative’s (SBTi) Portfolio Coverage methodology, whereby “financial institutions commit to engaging with their borrowers and/or investees to set their own science-based targets, which shall be validated by the SBTi, such that the financial institution is on a linear path to achieve 100% SBT coverage by 2040.” We are committed to 75% SBT portfolio coverage by 2025, a pace that should put us on-track towards 100% SBT coverage well before SBTi’s 2040 deadline.