Discover How Net Zero Investment Framework (NZIF) Supports Investors

In this article, we delve into how the Net Zero Investment Framework (NZIF) supports investors in their journey towards achieving net zero goals. Featuring insights from Sawan Kumar, Bethan Rose, and Rebekah Nash from Evenlode Investments, we explore the strategic use of NZIF to evolve their net zero strategy and deliver sustainable investment solutions.

Establishing a Baseline

Learn how Evenlode Investments used NZIF to establish a baseline for their net zero strategy.

Evenlode Investments, as a part of the Net Zero Asset Managers Initiative, recognized the significance of establishing a baseline for their net zero strategy. Using SBTi data, they determined that approximately 24% of their material assets under management were already aligning with or achieving net zero. Such findings paved the path towards establishing a portfolio coverage target that includes 100% of their material assets under management.

In close collaboration with their fund managers, Evenlode Investments established a target that presented an adequate yet achievable challenge. They aimed for 50% of their assets under management in material sectors to align with or achieve net zero by 2025, with this number increasing to 100% by 2030. Moreover, they included a decarbonization target of 50% by 2030 to meet the requirements of the NZAM.

To assess asset alignment accurately, Evenlode Investments leveraged publicly available company data, often benchmarked by Climate Action 100+ or the Transition Pathway Initiative. This approach enabled them to develop a comprehensive understanding of how companies were progressing towards their net zero targets.

Scope 3 Analysis: Inclusion of Emissions Data

Discover how Evenlode Investments evaluated Scope 3 emissions and incorporated them into their decarbonization target.

One notable aspect of Evenlode Investments' approach was their inclusion of Scope 3 emissions in their decarbonization reference target. By aiming for a 51.6% reduction in emissions per £10k invested across scopes 1, 2, and 3 by 2030, they showcased their commitment to addressing the full spectrum of their portfolio's emissions.

To manage this, Evenlode Investments conducted thorough carbon emissions analysis, analyzing emissions data from companies and estimating where necessary. They found that a significant number of the companies included in their portfolio were disclosing Scope 3 emissions. For those that did not provide data, they utilized CDP data modeling in combination with their own analysis for estimation purposes.

While emphasizing their methodology as a model and estimation, Evenlode Investments prioritized efforts to calculate emission estimates for the maximum number of companies possible. This transparent approach demonstrated their commitment to addressing emissions across all aspects of their portfolio.

Commitment to Climate Solutions

Explore Evenlode Investments' passion for climate solutions and their impact-driven approach towards allocating assets to address climate change.

While outlining their targets, Evenlode Investments has been carefully considering the most impactful way to drive positive change through climate-oriented investments. One avenue they have explored is expanding their employee-funded Foundation to support climate solutions work.

Initiating this expansion would involve dedicating resources toward sectors including sustainability, science, and education. By incorporating climate solutions work into their Foundation, Evenlode Investments aims to focus on both on a global scale and the local community.

As the team aims to enhance the impact of their climate solutions target, they intend to allocate funds from their assets under management to drive meaningful change. Utilizing IIGCC's new guidance on climate solutions, Evenlode Investments seeks to align their investment strategies with their commitment to addressing climate change.

Conclusion

The Net Zero Investment Framework (NZIF) has proven to be a valuable tool for Evenlode Investments in their journey towards achieving net zero. By establishing a baseline, incorporating Scope 3 emissions, and committing to meaningful climate solutions, Evenlode Investments has embraced a comprehensive and proactive approach.

Their use of NZIF not only supports their net zero strategy but also guides their investment decisions, fostering sustainable growth while managing long-term risks. As an asset manager, Evenlode Investments is a testament to the benefits of implementing NZIF within their investment processes.

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