Troy Asset Management
Troy Asset Management is a privately owned, independent investment boutique whose aim is to protect and grow its investors’ capital over the long term. Troy joined the Net Zero Asset Managers Initiative in July 2021 and made its Initial Target Disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
45% of total AUM (USD $8.17 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio coverage baseline
65% of all committed portfolio companies are classified as aligned or aligning to a net zero pathway. This relatively high level of base performance comes not as a result of divestment but rather as a product of Troy’s long-standing investment style.
Portfolio decarbonisation reference baseline
6.45 tonnes CO2e / $m invested
Engagement threshold baseline
21% of financed emissions across all equity holdings in committed portfolios assessed as net zero or aligned to a net zero pathway.
18% of financed emissions across all equity holdings in committed portfolios are subject to either direct or collaborative engagement.
Target(s):
Portfolio coverage target
80% of all committed portfolio companies to be classified as net zero, aligned or aligning to a net zero pathway by 2025. 100% of all committed portfolio companies to be classified as net zero, aligned or aligning to a net zero pathway by 2030.
Portfolio decarbonisation reference target
To reduce the carbon footprint of committed assets (tons of CO2e per invested million USD) by 50% by 2030, relative to 2019.
Engagement threshold target
40% of financed emissions across all equity holdings in committed portfolios to be net zero or aligned to a net zero pathway by 2025.
40% of financed emissions across all equity holdings to be subject to direct or collective engagement and stewardship by 2025, all companies assessed as ‘not aligning’ are expected to be subject to direct engagement.
GHG scopes included:
We currently include Scope 1 & 2 within our financed emissions and aim to phase-in Scope 3 once reporting improves and we have greater confidence in data quality.
Methodology:
Net Zero Investment Framework
Scenario(s):
P2 emissions pathway from the 1.5°C pathway outlined in IPCC SR1.5
Additional information
Proportion of AUM committed:
Our commitment reflects the mix of Troy’s assets and AUM as at May 2022. It includes all equity holdings in the portfolios for which Troy has authority to commit to a Paris aligned investment strategy. Both AUM and asset mix will change over time and may result in an increase or decrease in the AUM committed. The AUM falling outside of the scope of our commitment includes asset classes for which there is no net zero aligned investment methodology (cash and gold) or, in the case of sovereign bonds, where we are awaiting further developments in the calculation of financed emissions. We are engaging with asset owner investors who are not currently committed to a Paris aligned investment strategy.
Policy on coal and other fossil fuel investments:
No firmwide policy currently. Troy’s investment approach is to avoid highly cyclical and capital-intensive businesses, and as a result we do not currently have any exposure to companies whose primary purpose is the extraction or refining of, or the generation of energy from, fossil fuels. Furthermore, we deem the stranded-asset risk associated with coal-related investments sufficiently significant to deter any future investment in this sector. Troy has an ethical fund product range which employ negative screening in accordance with published ethical exclusion criteria. Investment in businesses which refine, extract or generate power from fossil fuels are restricted by the ethical exclusion criteria.
Our ethical exclusions apply to 7.3% of AUM, as at May 2022. We will review the need to develop a firm-wide science-based coal policy over the course of the next 12-24 months.