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Our commitment to net zero

Wendy Cromwell, CFA, Head of Sustainable Investment
Julie Delongchamp, CFA, Climate Transition Risk Analyst
2023-06-30
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The views expressed are those of the authors at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional, institutional, or accredited investors only.

Wellington supports the goal of net-zero greenhouse gas (GHG) portfolio emissions by 2050, in line with the objective to limit global warming to 1.5°C.

About our commitment

In December 2020, Wellington became a founding member and signatory to the Net Zero Asset Managers  (NZAM) initiative. This early commitment is grounded in our primary goal of achieving our clients’ investment objectives and enables us to demonstrate continued leadership on climate action. It also helps us deepen company engagements and enhance consultative partnerships with clients and industry leaders. Through NZAM, we commit to the following:

  • Partner with asset-owner clients on their decarbonization goals, consistent with achieving net-zero emissions by 2050 or sooner
  • Set an interim target for the proportion of assets to be managed in line with that goal
  • Review the interim assets-under-management (AUM) target at least every five years with the aim of increasing the proportion of assets covered, until 100% are net zero
  • For assets committed to net zero, set an interim 50% emissions-reduction target by 2030

As more of our clients make net-zero commitments, and as better data and methodologies become available, we expect committed assets under management to increase over time. Figure 1 illustrates our approach.

Figure 1

our-commitment-to-net-zero-fig1

Why we have committed to net zero

Aiming to achieve competitive long-term outcomes

Our core commitment is to aim to deliver superior investment results and exceptional service for our clients. Through our partnership with Woodwell Climate Research Center, we have come to appreciate that the physical consequences of climate change will be felt sooner and be more disruptive than markets expect. As policymakers and markets increasingly recognize and respond to this, the transition to a low-carbon economy will only gain momentum. As a result, we believe actively considering transition-risk management at the company and portfolio level can help us deliver better financial outcomes for our clients.

Power of collaboration for the low-carbon transition

We embrace the opportunity to partner with clients, engage with companies, and participate in industry initiatives in pursuit of net zero. Through numerous net-zero industry initiatives, including NZAM, the Glasgow Financial Alliance for Net Zero (GFANZ), and the Paris Aligned Investment Initiative (PAII), we collaborate with other signatories...

To read more, please click the download link below.

Our approach to sustainable investing
 

Our approach to sustainable investing

Authored by
cromwell-wendy-316x316
Wendy Cromwell, CFA
Head of Sustainable Investment
Boston
julie delongchamp
Julie Delongchamp, CFA
Climate Transition Risk Analyst
London

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