Three asset managers provide net-zero updates

Robeco, Fidelity and Bennelong have all provided updates to their commitments towards reducing greenhouse gas emissions.

Robeco, with funds under management of $316 billion, announced its plans to decarbonise its investments by 30% in the next four years and by 50% by 2030, with a trajectory of approximately 7% decarbonisation year on year.

It also claimed it would reduce operational emissions – which it defined as emissions associated with business travel, electricity, heating and other business activities – by 35% in the next four years and by 50% by 2030.

Similarly, Fidelity, with $1.05 billion in funds under management, pledged to reduce carbon dioxide emissions across its portfolio by 50% by 2030, from a 2020 baseline.

It also committed to phasing out exposure to the thermal coal sector in OECD countries by 2030 and by 2040 globally.

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Both Fidelity and Robeco had net zero by 2050 ambitions.

Meanwhile, Bennelong, with $19.4 billion in funds under management, said it had offset 200% of its operational emissions.

It claimed to have measured its carbon footprint through its energy use, waste, travel and suppliers, and its purchases of carbon credits through the Australian climate-tech startup, Trace.

Bennelong’s chief executive, Craig Bingham, said Trace and Bennelong were looking forward to exploring other opportunities through their partnership, including expanding their climate positive initiative to Bennelong’s portfolio of boutique asset management partners, and potentially its overseas operations in the UK and US (operating as BennBridge).

Robeco said it would step up its active ownership activities through voting and engagement with the top 200 emitters in its investment universe and focus on engaging on climate change with 55 companies that were responsible for 20% of portfolio emissions.

It would also promote climate-aligned investing by actively contributing to market standards and policies. It said it would continue to innovate its fund offering to provide low-carbon strategies that were expected to reach net zero by 2050 or earlier.

Victor Verberk, chief investment officer fixed income and sustainability at Robeco said: “Our vision is that safeguarding economic, environmental and social assets is a prerequisite for a healthy economy and the generation of attractive returns in the future”.

“Working in partnership with our clients, Robeco aspires to take a leading role in contributing to a net zero economy, create better and long-term risk-adjusted returns, and look after the world we live in. The low-carbon transition is not only a moral imperative, but also the prime investment opportunity of our generation.”

Fidelity said it would introduce its proprietary ‘Climate Ratings’ which would be rolled out to all companies in Fidelity’s investment universe and be integrated into all of its investment decisions.

“The Climate Ratings leverage Fidelity’s in-house research capabilities to assess the net zero ambition and alignment of investee companies and will be used to set targets for the net zero pathway of its funds,” it said.

“Together with the enhanced voting practices announced this summer to hold companies to minimum ESG standards, this policy will encourage companies to reduce their impact on the planet and deliver value for all stakeholders in a decarbonising world.”