Our climate goals
We understand that we are heading towards significant climate changes with major risks for global infrastructure and access to food, water, energy and medicine. As investors and asset managers, we need to understand the risks, but also the opportunities. By directing the capital towards the climate transition, we can capitalize on it and at the same time be part of the solution.
Net Zero Asset Managers Initiative
Ruth Asset Management has signed the world's largest climate initiative for asset managers, the Net Zero Asset Managers Initiative. In doing so, we joined the global crowd of forward-thinking asset managers who support the goal of net zero greenhouse gas emissions by 2050 or earlier. By supporting the initiative, we also commit to supporting investments in line with this goal.
Our climate goals
Reduce the financed emissions in the portfolio. For the part of the portfolio covered by the Net Zero Asset Managers Initiative, we have set the following goals:
- Reduce the greenhouse gas intensity of the portfolio by 40 % by 2030, measured as tCO2eq/mUSD revenue.
- Increase investments in companies in essential sectors that set science-based targets (SBTi) to cover 50 % of the portfolio by 2030.
- Focus our advocacy work on climate issues through voting guidelines and proactive dialogues with companies in sectors that are responsible for large emissions.
Our approach
- Complementing financial key figures and targets with climate key figures and objectives.
- Complementing the analysis before investment decisions with an understanding of climate risks/potential.
- Focusing the proactive ownership management towards the climate goal.
- Guidelines for voting at general meetings (proxy voting) in line with climate goals.
More about the method for goal setting
The method of goal setting used: The Net Zero Investment Framework of the Paris Aligned Investment Initiative.
- The emission reduction targets are set at unit level and will be reported as such. The target is set in accordance with the annual target of 7 % reduction in intensity terms derived from IPCC models that ensure no or minimal exceedance of the 1.5 °C threshold.
- The starting point from set up goal (baseline data) may be subject to recalculation, as we will make adjustments for improved data quality and other considerations that affect the baseline portfolio in scope.
The objectives for 2030 cover 63 % of AuM. Current capital to the extent of the objectives covers all internally managed assets where investment decisions are made internally or assets where the (external) investment decision partner has signed an agreement to comply with NZAMI. Our ambition is to increase the extent in dialogue with external asset managers over time. We exclude fixed income holdings at this time due to the challenge of acquiring data on the underlying fixed income instruments and associated companies in managed fund-of-fund portfolios. We exclude other asset classes initially due to methodological limitations (government bonds, cash, derivatives, and other alternative investments). We expect to be able to resolve this issue over time.
About the Net Zero Asset Managers Initiative
The Net Zero Asset Managers Initiative, which so far has 273 signatories with USD 61,3 trillion in AuM, is a formal partner of the UNFCCC's Race to Zero campaign. It is a campaign that brings together leaders and support from businesses, cities, regions and investors for healthy and resilient sustainable growth.
Race to Zero mobilizes a series of so-called net zero initiatives, which together represent an alliance of entities that collectively represent about 25 % of global carbon dioxide emissions and about 50 % of GDP.
What does net zero emissions mean?
Net zero is a term that indicates a situation where emissions of greenhouse gases into the atmosphere are balanced by efforts linked to reducing and binding the corresponding amount of emissions. In practice, the goal of net zero has come to be used synonymously with the goal of limiting global warming to 1.5 degrees C (the Paris Agreement, 2015)