United StatesWe support the growing consensus that the asset management sector as a whole can best contribute to meeting the goals of the Paris Agreement in three ways:
- Pricing climate risk accurately: adjusting portfolios and using tools to minimise exposure to transition risks
- Engaging carbon-intensive companies: identifying priority sectors/companies and engaging on detail of transition plans
- Investing in climate solutions: generally calculated as a share of AUM, linked to definitions of green/taxonomies, with avoided emissions as a key metric of impact
Of these, as a specialist investor, Impax focuses particularly on investing in climate solutions.
As a signatory of the Net Zero Asset Managers Initiative (NZAM)1, we support the goal of net-zero emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5°C.
The initiative is well aligned with our existing investment philosophy and our 25+ years’ experience as a specialist investor in climate solutions.
Our approach to the Paris Agreement
Our Investments
- Impax has over 25 years’ experience investing in companies delivering environmental solutions
- We invest in companies benefitting from the transition to net-zero emissions in line with the Paris Agreement and the shift to a more sustainable economy
- Our impact reporting includes Scope 1, 2, 3 emissions, as well as those avoided by the use of our portfolio companies’ products and services2
- We engage with companies about exposure to climate risks arising from carbon emissions and physical climate impacts and encourage them to build their climate resilience, following the TCFD framework
- As a NZAM signatory, our aim is for 100% committed AUM to be “transition aligned” or “transition aligning” related to climate management and process by 2030. Committed AUM consists of all actively managed listed equities and private equity investments which represent 92% of AUM. At least 50% of committed AUM will be classified as aligned. Impax’s approach is informed by the PAII Net Zero Investment Framework and is influenced by the SBTi Portfolio Coverage Approach.3
Policy, Advocacy & Partnerships
- Impax collaborates with clients and stakeholders for further policy action to incentivise a low-carbon economy
- We are in regular dialogue with UK, US and EU legislators on climate policy
- We are members of climate–focused organisations and initiatives including:
- CDP
- Climate Financial Risk Forum
- Financial Sector Deforestation Action initiative
- Energy Transitions Commission
- GFANZ (Glasgow Financial Alliance for Net Zero)
- IIGCC
- Net Zero Asset Managers Initiative
- Natural Capital Investment Alliance
- UK Sustainable Investment and Finance Association
- We support charities and non-profits focused on climate action, including Ashden, ClientEarth, Ceres, and WRI
Our Operations
- We are committed to reducing our operational emissions; Scope 1, 2 & 3
- We will minimise post-pandemic business travel and substitute short-haul air travel wherever practical
- We support and advocate for TCFD reporting recommendations will continue to measure and report carbon emissions and avoidance in line with best practices.
1 Impax’s NZAM submission: https://www.netzeroassetmanagers.org/signatories/impax-asset-management/
2 Impact @ Impax 2023 Report includes CO2 emission and avoidance reporting for c.90% of AUM as of 31st December 2022.
3 IIGCC Paris Aligned Investment Initiative, Net Zero Investment Framework 1.5C Implementation Guide: https://www.parisalignedinvestment.org/media/2021/03/PAII-Net-Zero-Investment-Framework_Implementation-Guide.pdf
While Impax may consult with other market participants on certain engagement efforts, Impax unilaterally determines whether and to what extent to engage with other stakeholders and all of Impax’s investment decisions are independent and based on its own, unilateral strategy for maximizing return on investment.