The climate crisis is already upon us. Urgent action is required from the investment industry to accelerate decarbonisation in the real economy, limit global temperature rise to 1.5C and ensure a just transition. This is an inseparable part of our fiduciary responsibility.
In 2020, Generation committed to align the investment portfolios we manage on behalf of our clients with net-zero emissions by 2040. We worked with peers and partners to help establish the Net Zero Asset Managers initiative (NZAM). Our interim targets as signatories of the initiative are to achieve 60% science-based target (SBT) coverage across all assets under management by 2025 and 100% SBT coverage by 2030. Generation has published a booklet, Making Sense of Climate Change, to guide companies through our expectations.
As a sustainable investment manager, Generation does not invest in fossil-fuel companies or fossil fuel-fired power. We are signatories of the Powering Past Coal Alliance Finance Principles. We publish a TCFD report annually.
Our planet’s natural assets are being systematically degraded and biodiversity is declining at the fastest rate in human history. The climate and nature crises are linked – we cannot get to net zero without acting to protect, better manage and restore our natural systems, alongside supporting front-line communities.
A critical step is to halt obvious destruction of nature, notably deforestation. In 2021 Generation became a founding member of Finance Sector Deforestation Action (FSDA) and is a signatory to the Financial Sector Commitment Letter on Eliminating Commodity-Driven Deforestation. As signatories, we commit to seek to eliminate forest-risk agricultural commodity-driven deforestation activities at companies in our investment portfolios by 2025. Generation and other FSDA signatories have developed a set of Investor Expectations to assist companies in their efforts to reduce deforestation risks. Again, Generation has published a booklet for companies, Making Sense of Deforestation.
Generation is a member of the Taskforce on Nature-related Financial Disclosures (TNFD) Forum.