Our climate metrics and target

First Sentier Investors follows guidance from the Institutional Investors Group on Climate Change (IIGCC) on classifying companies' net zero progress.

Companies can be classified as a) achieving net zero, b) aligned to a net zero pathway, c) aligning towards a net zero pathway, d) committed to aligning, or e) not aligned. This classification follows criteria outlined by the IIGCC.

1. Ambition - A long term goal consistent with achieving global net zero emissions by 2050
2. Targets - Short- and medium-term emissions reduction target (scope 1, 2 and material scope 3)
3. Disclosure - Disclosure of scope 1, 2 and material scope 3 emissions
4. Decarbonisation strategy - A quantified plan, setting out the measures that will be deployed to deliver on greenhouse gas targets, proportions of revenues that are green and, where relevant, increases in green revenues
5. Capital allocation alignment - A clear demonstration that the capital expenditures of the company are consistent with achieving net zero emissions by 2050
6. Emissions performance - Current emissions intensity performance (scope 1, 2 and material scope 3) relative to targets

Source: https://www.iigcc.org/resource/the-net-zero-investment-framework-supplementary-target-setting-guidance/

An important part of furthering the conversation with clients around climate change risks and opportunities is transparency and good quality information. Each investment team has prepared a climate change statement describing their approach to incorporating climate-related issues into their strategies.

Carbon footprint reports

The listed equity teams also publish carbon footprint reports which can be accessed from their respective team pages. Below is the combined footprint for all listed equity portfolios.

Disclaimer

To the extent this material contains any measurements or data related to environmental, social and governance (ESG) factors, these measurements or data are estimates based on information sourced by the relevant investment team from third parties including portfolio companies and such information may ultimately prove to be inaccurate. To the extent this material contains any ESG related commitments or targets, such commitments or targets are current as at the date of publication and have been formulated by the relevant investment team in accordance with either internally developed proprietary frameworks or are otherwise based on the Institutional Investors Group on Climate Change (IIGCC) Paris Aligned Investment Initiative framework. The commitments and targets are based on information and representations made to the relevant investment teams by portfolio companies (which may ultimately prove not be accurate), together with assumptions made by the relevant investment team in relation to future matters such as government policy implementation in ESG and other climate-related areas, enhanced future technology and the actions of portfolio companies (all of which are subject to change over time). As such, achievement of these commitments and targets depend on the ongoing accuracy of such information and representations as well as the realisation of such future matters. Any commitments and targets set out in this material are continuously reviewed by the relevant investment teams and subject to change without notice.