Our climate metrics and target

First Sentier Investors has the ambition to reduce greenhouse gas emissions across its investments in line with a target of progressing towards net zero emissions by 2050 (or sooner) and across its business operations in line with a target of net zero emissions by 2030 (or sooner).

We believe that society must drastically reduce greenhouse gas emissions if we are to avoid the worst consequences of the climate crisis. For this reason, the First Sentier Investors group supports the global transition to a low carbon economy in line with the goals of the Paris Agreement.¹ 

We believe that we have a responsibility to encourage the companies we invest in to reduce their greenhouse gas emissions. 

Most investment teams that are actively managing their clients’ money have developed a range of targets at team, portfolio and/or company level that they wish to pursue over the short-, medium- and long-term. Details are available on their pages under What we invest in. Our net zero approach is guided by the Paris Aligned Investment Initiative’s Net Zero Investment Framework (PAII NZIF). Teams have set investment  and/or carbon intensity reduction targets and have committed to monitoring and tracking our progress against those targets.

The initial proportion of our total assets under management (AUM) to be managed in line with our net zero ambition was 44.5%². This means that 44.5% of the money that we manage is invested in portfolios where the investment manager has set a net zero target. As 31 December 2023 the proportion has increased to 65.7%. 

Over time, we aim to increase this number, so that even more of our portfolios are covered by formal net zero targets. This is set out in our Climate Change Action Plan released in 2022 and our 2023 progress update.. First Sentier Investors will continue to evaluate the future inclusion of additional asset classes and investment strategies as methodologies and data become available.

¹ Cutting greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere, by oceans and forests for instance. Source: United Nations Net Zero Coalition 

² This number is based on organisation-wide AUM as at 31 December 2021 , and includes Stewart Investors. When First Sentier Investors first signed up to the Net Zero Asset Managers initiative (NZAM), which is a reporting protocol used by the firm, the initial AUM covered by the target was 37.9%, and excluded Stewart Investors. This was because Stewart Investors had already signed up to NZAM separately for 100% of its AUM. For Stewart Investors has its own, separate net zero target.