GAM Investments have announced its short-term net zero targets, in line with its commitment to the Net Zero Asset Managers initiative (NZAM). GAM’s targets cover more than a third of its assets under management (AuM) in Investment Management. This includes all funds classified as equity or corporate fixed income. GAM’s AuM in Investment Management as at 30 June 2022 was USD 32.9 billion.
This comes as the countdown to COP27 is in full swing, with the key climate talks taking place in Sharm el-Sheikh, Egypt in just over two months. A central focus of the conference, will be the role of private finance in making meaningful progress towards net zero emission goals.
GAM’s new ‘interim’ targets committed by 2030 include:
- Have 75%1 of AuM in material sectors aligned or aligning with net zero
- Achieve a 50% reduction in financed carbon emissions (i.e. emissions/USD million invested attributed using enterprise value*) from a 2019 baseline
- Engage directly or collaboratively with 90% of our financed emissions to ensure they are aligned or in the process of aligning to net zero
GAM is also becoming a signatory to the Powering Past Coal Alliance (PPCA) Finance Principles, joining investors and governments alike in accelerating the transition from high-polluting coal to cleaner energy.
Stephanie Maier, Global Head of Sustainable and Impact Investment at GAM Investments, said: “It’s imperative that in the midst of soaring energy prices and inflation we do not overlook the ‘Decade of Transition’ that is well underway. Our response to the climate change challenge will significantly shape the investment landscape. Those investors committed to net zero have a critical role to play in supporting a net zero future.
We are proud to support our clients in delivering on their net zero commitments. Our interim targets reflect GAM’s commitment to securing real emission reductions in our portfolio and accelerating the low-carbon transition.”
GAM became a member of the NZAM Initiative a year ago, committing itself to transforming all assets in line with net zero by 2050 or sooner and support crucial Paris Agreement goals. The group is made up of 273 asset managers, with a total of $61.3 trillion in AuM. Key parts of the process are for signatories to submit an interim target and review targets every five years, until 100% of assets are consistent with a net zero outcome.
The targets also mark one year on since the launch of GAM’s Sustainable Climate Bond Strategy, one of the first funds to focus on European financial issuers and part of a series of planned sustainable products developed by GAM to support clients in achieving net zero. The strategy helps clients invest in a wide range of green technologies and solutions, from green hydrogen to green housing. In its first year the projects financed by the green bonds in the portfolio helped avoid 1,580 tons of CO2e – equivalent to driving a car more than 200 times around the Earth. They also helped install 2.8MW of renewable energy capacity and to financing around 1500m2 of green buildings.