Net-zero 2040 Portfolio Ambition Unveiled by Macquarie Asset Management

Australian manager aims to have net-zero plans in place for alternative portfolios by 2022.

Macquarie Asset Management (MAM), the investment management arm of Australian financial services company Macquarie Group, says it will manage its portfolios in line with net zero emissions by 2040 as part of the group’s efforts to accelerate transition to a low-carbon economy.

The firm said it will use a range of solutions to mitigate climate change and adapt to current and future affects upon financial markets. “Today we are announcing a range of commitments that will reduce emissions across our portfolio and build sustainable long-term value for the benefit of our portfolio companies, our clients and the communities in which we operate,” said Martin Stanley, head of MAM, in a letter to investors.

In alternative investment portfolios over which the firm exercises control or significant influence, MAM intends to have net-zero/Paris-aligned business plans in place by 2022. As part of these plans, MAM will measure greenhouse gas emissions of all portfolio companies, identify pathways to emission reduction and develop plans which contribute to a net-zero economy by 2040 or sooner.

MAM, which has US$397 billion of assets under management, will also work alongside portfolio companies to ensure they meet net-zero emissions commitments by 2030, and provide annual reports on its net-zero portfolio progress.

In addition, MAM committed to supporting the goals of the Paris Agreement within portfolios of public securities and alternative investments over which the firm does not hold significant influence, consistent with client-guided fiduciary and regulatory responsibilities.

Macquarie Group already supports international collaborations on climate change, including the Taskforce on Scaling Voluntary Carbon Offsets and the Sustainable Markets Initiative. The group has reported according to the Task Force on Climate-related Financial Disclosures since 2019, and currently develops, contracts, invests in and manages over 50GW of renewable energy projects globally. It has restricted investments into businesses with exposure to coal, and expects limited exposure to the coal sector to diminish.

Macquarie Group has invested A$60 billion in renewable energy projects over the past 10 years and has invested more than A$36 billion in green energy projects through its Green Investment Group (GIG). GIG has also provided power purchase agreements for over 3GW of renewable energy, and is currently developing a 30GW global project pipeline.

The announcement a commitment made by Dutch asset manager Robeco, which detailed the firm’s to net-zero portfolio emissions by 2050.

Separately, Rathbone Greenbank Investments has also signalled its support for the introduction of effective measures to reverse nature loss by signing the Finance for Biodiversity Pledge. The pledge, launched by 26 financial institutions from ten countries, calls on signatories to engage with portfolio companies, assess investment impact on biodiversity, set science-based targets and to report publicly on progress made.

A unit of Rathbone Investment Management, Greenbank manages over £1.7 billion of funds for individuals, charities, other not-for-profit organisations, trusts, and pension funds.

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