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.
We are continuously reviewing the many emerging net-zero and Paris-aligned investment frameworks to ensure that our approach remains best-in-class.
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 accounts for direct and indirect financed emissions, and emissions avoided from portfolio companies’ products and services. These portfolios show a carbon benefit1
- We engage with companies about exposure to climate risks arising from carbon emissions and physical climate impacts and encouraging them to build their climate resilience, following the Task Force on Climate-related Financial Disclosures (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:
- IIGCC
- Ceres
- Climate Financial Risk Forum
- Energy Transitions Commission
- CDP
- We support charities and non-profits focused on climate action: Ashden, ClientEarth, Ceres, and WRI through multi-year strategic partnerships
Our Business
- We are committed to reducing our operational emissions; Scope 1, 2 & 3
- c.98% of our offices’ electricity is already from renewable sources
- We will minimise post-pandemic business travel wherever practical
- We make direct investments from our balance sheet into our New Energy Funds which result in a carbon benefit, even after taking into account our operational emissions. We pledge to maintain that position in future
- We will continue to measure and report carbon emissions and avoidance in line with best practices
1 As of 31 Dec 2019. 2020 Impact @ Impax Report. Covering ~80% of assets under management.