Man Group commits to net-zero carbon emissions goal

From

Luke Ellis

Man Group announces that it has joined the Net Zero Asset Managers initiative and is thereby committed to reducing greenhouse gas emissions to net zero in investment portfolios by 2050. This is an industry-led effort to help limit warming to 1.5C, consistent with the Paris Accord. The firm has a significant focus on Responsible Investment (RI) and ESG, and this commitment complements the progress already made on climate objectives across RI investing, stewardship and industry advocacy.

In line with the initiative’s objectives, Man Group pledges to:

  • Work in partnership with asset owner clients on decarbonisation goals, consistent with an ambition to reach net zero emissions by 2050 or sooner across all assets under management (‘AUM’);
  • Set an interim target for the proportion of assets to be managed in line with the attainment of net zero emissions by 2050 or sooner; and
  • Review its interim target at least every five years, with a view to increasing the proportion of AUM covered until 100% of assets are included

The Net Zero Asset Managers initiative, an international group of asset managers with 128 signatories and $43 trillion in assets under management, provides a powerful tool for investors to raise collective climate expectations, articulate the decarbonisation curve of portfolios and engage with companies. Under this guidance, Man Group expects to outline a path to an interim 2030 target across its corporate issuer-specific holdings through both decarbonisation and increasing investment in climate solutions. As a diversified asset manager, Man Group recognises the lack of standardised approaches in the non-corporate issuer domain and will work within the Institutional Investors Group on Climate Changes (IIGCC) framework and in partnership with other forums to align its total asset exposure to net zero.

Luke Ellis, CEO of Man Group, says: “Climate change is an urgent challenge. It represents an existential risk not only for how we will manage our clients’ money, but also for how we will move forward as a society. In that light, asset managers can and must act as powerful drivers for much-needed climate action. The gravity of this is reflected in how we as a firm evaluate climate risk, engage with companies and continue to decarbonise our portfolios. We join the Net Zero Asset Managers initiative in order to build on our existing progress, raise our own standards of accountability for portfolio-born emissions and send an unequivocal message that we recognise the importance of managing climate risk for our clients, employees, stakeholders and the environment.”

Man Group integrates ESG into the investment decision-making process across a wide range of quantitative and discretionary investment styles and continues to develop RI strategies and solutions that align with the values of the firm’s clients. Today, $43 billion[1] of the firm’s funds under management incorporate ESG factors into the investment process. Man Group actively coordinates its stewardship activities, including engaging investee companies on key ESG issues, co-filing shareholder resolutions and playing a leading role in the Say on Climate initiative. The firm voted in support of 97% of environment-focused shareholder proposals in 2020.

Man Group is also dedicated to promoting responsible investment in the asset management industry though advocacy, education and thought leadership. The firm is an active member of industry groups including the IIGCC, Climate Action 100+, Carbon Pricing Leadership Coalition and is a signatory for the UN-supported Principles for Responsible Investment, among others.

As a listed FTSE-250 company, Man Group plc has already committed to achieve net zero carbon in its global workplaces by 2030; the firm has recently been recognised as a FT Europe Climate Leader 2021 for its work reducing its scope 1, 2 and 3 carbon emissions.

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[1] Man Group calculation, based on Global Sustainable Investment Alliance definitions, where ESG integration is defined as the systematic and explicit inclusion by investment managers of environmental, social and governance factors into financial analysis. The RI AUM figure aggregates all relevant portions of portfolios (funds or mandates) which routinely and explicitly include ESG factors into the investment decision making process. This includes combined AUM of all affiliated Man Group investment managers. All investment management services are offered through Man Group affiliated investment managers.

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