Trillium Asset Management
Trillium Asset Management is a Boston-based investment management firm with offices in Edinburgh, London, Portland, and San Francisco. It joined the Net Zero Asset Managers Initiative on 20 April 2021 and its initial target disclosure was published on 1 November 2021.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
60% of total AUM (USD $3 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio coverage baseline
As of 12 December 2019, ~15% of the equity assets included in our commitment had either committed to setting science based targets or had done so, according to data from SBTi
Target(s):
Portfolio coverage target
75% of the equity assets held in our larger cap equity portfolios will have approved science-based targets (SBTs) for reducing their greenhouse gas emissions, approved by Science Based Target initiative (SBTi) by December 31, 2030.
GHG scopes included:
Using the portfolio coverage approach, we expect our portfolio companies’ targets will include their Scope 1 and 2 emissions, and Scope 3 when required by being greater than 40% of total emissions.
Methodology:
Science Based Target initiative for Financial Institutions
Scenario(s):
Applying the Science Based Targets initiative methodology to our large cap holdings, our goal is aligned with a 1.5 degree scenario.
Additional information
Proportion of AUM committed:
The proportion represents all of the Trillium-advised equity investment strategies that invest primarily in larger cap equities, which excludes our U.S. Small and Midcap Core Strategy, and any similar strategies we may launch. We intend to continue engaging with companies in our Small/Mid Cap equity strategy to encourage them to adopt science-based greenhouse gas reduction targets and commit to net zero emissions by 2050.
We anticipate continuing to assess methodologies appropriate for us to measure and set targets for our fixed income investments, which contains a mix of sovereign and sub-sovereign government, supranational and corporate debt, a large portion of which is use-of-proceeds debt such as certified green bonds.
We also anticipate working with the Advisers of investment products that Trillium is the Sub-Advisor for, towards setting and achieving their own Net Zero goals.
Policy on coal and other fossil fuel investments:
Yes. This information will be available on our website shortly, and will apply to 100% of our AUM.
In short, our policy is that Trillium will not invest in Energy and Power companies that have not demonstrated a commitment to a business model designed to succeed in a low-carbon economy. While Trillium may invest in companies with a history of or legacy exposure to fossil fuels, such an investment would heavily rely on evidence that the company’s business model has shifted to alignment with net zero emissions.
Further information:
Target Setting: We believe that if 75% of the assets in our large cap equity portfolios have approved science based targets by 2030, that will indicate significant progress being made towards emissions reduction goals and that a fair share of the 50% global reduction in CO2 emissions by 2030 will have been delivered.
Engagement and Alignment: We will continue our long history of shareholder engagement to encourage and work with our portfolio companies to set their science based targets, and make and report progress against the targets, including in collaboration with other investors and non-profits.