Brett Jollie

At COP26, global asset manager abrdn has announced its target to reduce the carbon intensity of its assets by 50% by 2030 vs a 2019 baseline^[1].

abrdn has developed a climate change strategy focused on Net Zero Directed Investing (NZDI). This means moving towards the goal of net zero in the real world – not just in its portfolios. abrdn will seek to achieve this goal through a set of actions, including rigorous research into net-zero trajectories, developing net-zero-directed investment solutions and active ownership to influence corporates and policy makers.

The goal will be delivered via three pillars of action:

1. Decarbonisation: abrdn is committed to tracking and reducing the carbon intensity of its portfolios. That means continuing to incorporate carbon analysis into the investment process and supporting credible transition leaders and climate solutions. Our equities, credit and quants investments already have the majority of assets with a carbon intensity below benchmark and our Real Estate business has committed to aligning their assets to net zero 2050 pathways.
2. Providing net zero solutions: abrdn is committed to increasing the proportion of assets flowing into net zero directed investing solutions. Around 30% of AUM is currently managed in line with net zero 2050. abrdn will aim to increase this by continuing to develop net zero solutions across all asset classes, actively engaging with clients as well as transitioning its fund range to support net zero goals.
3. Active ownership: abrdn is committed to voting and engaging with its investee companies to drive change and transition real assets. The team will engage with the highest financed emitters across equity and credit holdings seeking transparency on progress against clear transition milestones assessed against relevant standards – such as the Climate Action 100+ net zero benchmark. abrdn will divest from companies where, after two years, it considers insufficient progress has been made against the transition milestones set, unless it’s not in line with the client mandate.

abrdn recognises that sustainable change starts with its own operations. That’s why it is also announcing its own ambitious target of net zero in operations by 2040.

Stephen Bird, CEO of abrdn said: “At abrdn we are acutely aware of our obligation to support the drive towards net zero. That’s why I’m pleased we can announce these climate commitments today – both for the investments we manage and our own operations – which build on those we made earlier in the year.”

“But we must be very clear: simply moving our clients’ money out of high-carbon intensity stocks into greener options will not solve the world’s crisis. Decarbonising a portfolio is not the same as decarbonising an industry. To achieve that we need effective engagement with companies, because more seismic change will come from backing credible transition firms on their path from high to low carbon intensity.”

“And asset managers cannot operate in a vacuum. Bolder, collective action by governments is desperately needed. Effective incentives in the form of appropriate carbon pricing are absolutely critical to enable capital allocation in line with net zero and to create an investment environment which rewards companies and investors that go green. We also need a proper debate  and action on the role of the tax system in the transition. Pricing carbon needs to be focused on changing behaviours, and ensuring a just transition, on a national and global scale.”

Brett Jollie, Managing Director of abrdn Australia added: “At abrdn we believe asset managers must take a forward-looking view to support the net zero transition by providing capital to companies that have ambitious and credible decarbonisation strategies. Active ownership is a powerful tool to influence real world decarbonisation and provides a means to challenge companies on their transition strategies and influence corporate behaviour

“Stronger global climate policy is fundamental to enabling capital allocation in line with net zero 2050 and we urge governments to step up ambition and action,” Mr Jollie said.

This new pledge builds on the commitments abrdn announced earlier this year.

abrdn also believes in collective change which is why it joined the Net Zero Asset Managers (NZAM) initiative which this week also published the first Net Zero Asset Managers initiative Progress Report.

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The appointments broaden the global talent on Standard Life Aberdeen’s senior leadership team and will support the company’s ambitious growth agenda.

René joins ASI at an exciting time as the Asia Pacific business is competitively positioned to grow in some of the world’s fastest-growing savings and investments markets. René will be responsible for driving the company’s global strategy in the region as it invests to further build its franchise, accelerating growth in Asia Pacific and bringing its full breadth of global investment capabilities closer to clients.

Based in Singapore, René will join the Executive Leadership Team and report to Stephen Bird, CEO of Standard Life Aberdeen.

René brings over three decades’ experience in global wealth and asset management, corporate banking and financial markets, including 29 years with UBS. He was most recently Head of Asset Management Asia Pacific and Global Head of Wholesale Client Coverage at UBS, where he led its regional operations across seven countries and managed its global wholesale business. He has a proven track record of developing investment business in APAC across segments and distribution channels.

In his role as Chairman Asia, Hugh will continue to champion ASI’s business in the region. He will provide strategic counsel to René and retain his director positions on fund and UK investment trust boards.

Stephen Bird, CEO, Standard Life Aberdeen, commented: “The Asia Pacific region is core to Standard Life Aberdeen’s growth strategy. René’s wealth of experience in asset and wealth management, deep knowledge of key client segments and a proven record of developing a strategic business will support our growth ambition. His acute understanding of client needs and evolving investment trends will be vital, as we focus on the significant opportunities in the region and delivering a diverse array of future-fit investment solutions to our clients.” 

“Hugh has been instrumental in establishing a solid foundation for our Asia Pacific business, building a deep bench of talent and delivering quality investment outcomes, putting the region on a sustainable growth path. I want to thank him for his enormous contribution to the business over the 35 years. We are delighted that he has agreed to stay on as Chairman Asia, his counsel and strategic advice will be invaluable as René transitions into the role.”

Hugh Young said: “I am pleased to hand over leadership of our APAC business to an established leader like René. With a focused strategy, an unparalleled range of asset class capabilities and strong investment performance, the business is extremely well positioned to embark on the next stage of growth.”

René Buehlmann added: “The growing demand from clients for innovative solutions to address their investment and retirement needs, combined with Aberdeen Standard Investments’ proven Asian and global investment expertise, presents tremendous opportunities for the business. I am excited to take on this role and look forward to contributing to the company’s continued success in Asia Pacific.” 

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