GAM Investments to halve financed carbon emissions by 2030 on road to net-zero

GAM has unveiled targets that will cover more than one-third of its assets under management. This includes all funds classified as equity or corporate fixed income and is equitable to $32.9bn.

GAM’s new interim targets committed by 2030 include having 75% of its assets under management in material sectors aligned with net-zero emissions and achieving a 50% reduction in financed emissions against a 2019 baseline.

The new targets will also see GAM engage with 90% of its financed emissions portfolio to ensure they set net-zero targets or align with the movement.

GAM’s global head of sustainable and impact investment Stephanie Maier said: “It’s imperative that in the midst of soaring energy prices and inflation we do not overlook the ‘Decade of Transition’ that is well underway. Our response to the climate change challenge will significantly shape the investment landscape. Those investors committed to net zero have a critical role to play in supporting a net zero future.

“We are proud to support our clients in delivering on their net zero commitments. Our interim targets reflect GAM’s commitment to securing real emission reductions in our portfolio and accelerating the low-carbon transition.”

Net Zero Asset Managers

GAM has also confirmed it will become a signatory to the Powering Past Coal Alliance (PPCA) Finance Principles and will work with investors and governments to transition the move away from fossil fuels.

The commitments are in line with GAM’s existing alignment with the Net Zero Asset Managers initiative (NZAM).

Last year it was revealed that NZAM now covered more than one-third of assets under management globally, after 43 big names, including BlackRock and the Vanguard Group, signed up.

The initiative commits members to reaching net-zero financed emissions by 2050 or sooner and is made up of 273 asset managers, with a total of $61.3trn in assets under management.

GAM’s targets come one year after it launched its Sustainable Climate Bond Strategy. The strategy helps clients invest in green technologies and solutions on the road to net-zero. In its first year, projects financed through the strategy have helped avoid 1,580 tons of CO2e and helped install 2.8MW of renewable energy capacity and to financing around 1500m2 of green buildings.