Triple Eight Capital
Triple Eight Capital are dedicated to responsible investment and believe that positive environmental and socio-economic benefits can be achieved alongside attractive investment returns. Triple Eight Capital use a framework which also considers a company’s contribution to society (the United Nations Sustainable Development Goals) as well as environmental, social and governance (ESG) risks. They joined the Net Zero Asset Managers Initiative in November 2022 and made their Initial Target Disclosure in May 2024.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
100% of total AUM (USD $0.014 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Engagement threshold baseline
5% of portfolio companies aligning, 55% committed, 40% not aligned.
23% of financed emissions (Scope 1 and 2) in material sectors were subject to direct or collective engagement and stewardship actions.
Portfolio coverage baseline
5% of portfolio companies aligning, 55% committed, 40% not aligned (based on portfolio companies held on 31 December 2022).
Portfolio decarbonisation reference baseline
Emissions data -31 December 2019 Portfolio holdings – 31 December 2021.
Calculated using Weighted average carbon intensity (tCO2e/$m revenue).
T8 Energy Vision: 165 tCO2e/US$m revenue (Scope 1 and 2).
Target(s):
Engagement threshold target
100% of financed emissions in material sectors are either net zero or aligned or subject to direct or collective engagement and stewardship actions by 2025.
Engagement threshold target
80% of portfolio companies in material sectors considered net zero, aligned, or aligning by 2030.
Portfolio coverage target
80% of portfolio companies in material sectors considered net zero, aligned, or aligning by 2030.
We first joined NZAMI in 2022 and therefore have selected to assess the alignment of portfolio companies based on holdings as at 31 December 2022.
Due to the short period of time between our selected baseline of December 2022 and 2025, T8 does not believe that we will be able to influence material changes in the alignment of portfolio over this short timeframe. We have therefore not set alignment or carbon emission reduction targets for 2025.
Many of the companies within our investment universe have not set detailed carbon emission reduction targets beyond 2030.
We therefore do not believe it is appropriate for us to set detailed targets beyond 2030. We will review our targets annually.
Portfolio decarbonisation reference target
T8 Energy Vision: -45% reduction in tCO2e /$m revenue (Scope 1 and 2) by 2030.
Triple Eight Capital formally assumed management of T8 Energy Vision on 31 July 2020. We have calculated baseline emissions intensity largely based on portfolio holdings as at 31 December 2021 (this being the earliest representative holdings for the portfolio going forward). To align with NZAM’s preferred baseline of 2019, we have utilised portfolio company emissions data from 31 December 2019. Coverage of this earlier emissions data is however more limited, with no data available for over 20% of portfolio companies held at 31 December 2021. To account for this missing data we have adjusted portfolio weightings in the calculation of baseline emissions intensity (the missing portfolio weighting has been distributed equally across companies with available data).
Due to the short period of time until 2025, T8 does not believe that we will be able to influence material changes in the emissions
intensity of the portfolio by 2025. We have therefore not set targets for 2025. In addition, many of the companies within our investment universe have not set detailed carbon emission reduction targets beyond 2030. We therefore do not believe it is appropriate to set detailed targets beyond 2030 at this stage.
GHG scopes included:
Availability of emissions data for portfolio companies has varied over time. Details of 2022 coverage of emissions data are outlined in T8 Energy Vision’s Responsible Investment Report (https://t8cap.com/insights/annual-responsible-investment-report- 2023/).
Many of the companies within our investment universe have not set detailed carbon emission reduction targets for Scope 3 emissions. In addition, available Scope 3 data for companies within our investment universe is often quite variable. We therefore do not believe it is appropriate at this stage to set detailed targets for portfolio company Scope 3 emissions.
Methodology:
Net Zero Investment Framework
Scenario(s):
To determine our targets we have constructed a simple model where we have estimated the emissions reductions from proxy companies for the different industry building blocks within the portfolio. These reductions are based on their publicly declared emissions reductions targets. Proxy companies for the building blocks of solar, wind, electric vehicles, energy efficiency and clean utilities (5 of the 10 building blocks) have targets approved by the Science Based Target Initiative, or are committed to the Science Based Target Initiative target approval process. Emissions reduction pathways for the critical materials building block proxy companies are based on the Transition Pathway Initiative’s projected decarbonisation trajectories for copper and aluminium. Both the copper and aluminium companies’ decarbonisation trajectories are within the Transition Pathway Initiative’s “1.5 degree” or “below 2 degree” pathways for copper and aluminium.
Additional information
Policy on coal and other fossil fuel investments:
Details of our investment criteria, including fossil fuels, are outlined in our Responsible Investment Policy (https://t8cap.com/t8-responsible-investment-policy/). This applies to 100% of T8 Energy Vision AUM.
Further information:
More detail on our approach to climate and net zero is available in our Responsible Investment Policy (https://t8cap.com/t8-responsible-investment-policy/); Responsible Investment Reports (https://t8cap.com/insights/) and at https://t8cap.com/t8-net-zero-commitment.