Milan, March 2022 – Algebris Investments became a signatory of the Net Zero Asset Managers Initiative (NZAM) in March 2021. As part of this commitment, Algebris has set an initial target of 57% of its total AUM[1] to be managed in line with attaining net zero emissions by 2050 or sooner.
Algebris’ Net Zero AUM commitment includes all Algebris financial strategies (Algebris Financial Credit Fund, Algebris IG Financial Credit Fund, Algebris Financial Equity Fund, Algebris Financial Income Fund, Algebris Long Only Fund, Algebris Financial Bond Fund) and will be reviewed at least every five years with a view to reach 100% AUM coverage.
To reach the Net Zero AUM target, Algebris has committed to drive adoption of science-based emission reduction Targets (SBTs) across all underlying investments in the portfolios and funds that are included in the Firm’s Net Zero AUM commitment, by 2040. For these companies to have enough time to implement their target and ultimately achieve an economy-wide transition to net zero by 2050, they will need to have had their SBTs approved by 2040. The ambition to reach 100% SBT coverage of Algebris Net Zero-aligned portfolios by 2040 translates into interim targets of 50% by 2030.
The Net Zero Asset Managers initiative (NZAM) is an international group of asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5°C. The initiative was launched in December 2020 with an initial group of 30 signatories and is convened by six recognised investor networks: AIGCC (Asia), Ceres (North America), IGCC (Australasia), IIGCC (Europe), UN PRI (global), CDP (global). The commitment is consistent with the UNFCCC Race to Zero criteria, and NZAM is accredited by Race to Zero.
At the time of writing, the initiative has reached 220 signatories, representing over USD 57 trillion in assets under management (AUM). In line with the best available science on the impacts of climate change, NZAM signatories acknowledge that there is an urgent need to accelerate the transition towards global net zero emissions and for the asset management industry to play its part in helping to deliver the goals of the Paris Agreement and ensure a just transition. Within 12 months of signing up to the NZAM initiative, asset managers are required to disclose the initial proportion of assets that will be managed in line with the attainment of net zero emissions by 2050 or sooner.
[1] Corresponding to 79% of AUM excluding discretionary mandates.
