Witan Investment Trust plc
Witan’s purpose is to achieve significant growth in its investors’ wealth by investing in global equity markets, using a multi-manager approach. Witan joined the Net Zero Asset Managers Initiative in February 2022 and made its Initial Target Disclosure in January 2023.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
75% of total AUM (USD $1.6 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio decarbonisation reference baseline
218 tons CO2e / $M sales
Portfolio decarbonisation reference target
-50% portfolio emissions in intensity terms.
GHG scopes included:
Interim targets are based on Scope 1+2 emissions. Scope 3 emissions will be incorporated once our managers are confident that the data is robust enough to consider it appropriate for inclusion.
Net Zero Investment Framework
Our interim target (measured by WACI as recommended by TCFD) was derived directly from our NZAM commitment and based on the recommendations of the Paris Aligned Investment Initiative NZIF. This target (and our net zero 2050 commitment) aligns with IPCC’s 1.5°C scenarios and is consistent with the methodology employed by the TPI (of which we are a supporter).
Proportion of AUM committed:
Witan’s portfolio consists of two primary components: A core portfolio, which invests primarily in developed market equities listed on major stock exchanges and a specialist portfolio, which invests in non-mainstream assets. Witan’s interim target for the proportion of assets to be managed in line with net zero initially covers the core portfolio and the majority of its financed emissions. Assets in the specialist portfolio lack reliable data due to their size, domicile, or their unlisted or specialist nature or are held via funds where timely and or detailed information is insufficient to allow us to set a robust baseline or to estimate current or future emissions. We will look to expand coverage when circumstances allow.
Policy on coal and other fossil fuel investments:
Witan does not impose blanket exclusions on our managers as we believe that engagement with companies has a greater positive impact than divestment. Fossil fuels remain part of the global energy mix and, in some cases, fossil fuel extraction companies are considerable contributors to the global capex required to fund the net-zero transition. As such, we believe that these businesses remain legitimate recipients of our capital, provided they can demonstrate strong ESG management credentials. We use the TPI Tool to assess this awareness and require that managers engage with companies which fall short of Management Quality Level 3. This policy is under constant review and may be amended in future.