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, screening-out fossil-fuel investments 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, 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 20+ years’ experience as a specialist investor in climate solutions.
Our approach to the Paris Agreement
Our Investments
- Impax has over 20 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 services1
- 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
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 including:
- CDP
- Climate Financial Risk Forum
- Energy Transitions Commission
- IGCC
- We have signed up to climate–focused initiatives, including:
- Net Zero Asset Managers Initiative
- Natural Capital Investment Alliance
- PRI’s Deforestation Commitment
- We support charities and non-profits focused on climate action, including Ashden, ClientEarth, Ceres, and WRI
Our Business
- We are committed to reducing our operational emissions; Scope 1, 2 & 3
- 97% of our offices’ electricity is generated from renewable sources against a target of 100% 2
- 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 Impact @ Impax 2021 Report includes CO2 emission and avoidance reporting for c.90% of AUM as of 31st December 2020.
2 Impax Annual Report 2021