abrdn sets target to reduce the carbon intensity of assets it manages by 50% by 2030

4 November 2021

Today, on Finance Day at COP26, abrdn is announcing its target to reduce the carbon intensity of its assets by 50% by 2030 vs a 2019 baseline.

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.

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:

Decarbonisation: abrdn will track and reduce 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.

Providing net zero solutions: abrdn will increase 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.

Active ownership: abrdn will continue to vote and engage 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 we are also announcing our own ambitious target of net zero in our operations by 2040.

Source: abrdn