Global Environment Impact Report

The annual Global Environment Impact Report provides a deep dive into each holding in the Global Environment portfolio through a focused sustainability lens.

Global Environment strategy

The Global Environment strategy seeks to invest in leading businesses that are enabling sustainable decarbonisation.

 
“Scope 1 and 2 intensity declined for just under 80% of companies. Scope 3 intensity also declined, for just over 60% of companies, while 78% of portfolio companies increased their carbon avoided*”

* a measure of the extent to which their products and services contribute to sustainable decarbonisation

We are delighted to share our annual Global Environment Impact Report.

We hope this report helps you to monitor our sustainability attribution; researching and reporting on sustainability continues to be extremely helpful to us in better understanding the companies we invest in.

Decarbonisation by sector, region and theme
Region - United States - 43.7% decarbonisation

Figures may not add up due to rounding

Highlights from the 2023 report

Sustainability data dashboard

% of portfolio companies reporting emissions

Scope 3 - All categories

52%

(54%)*

Scope 3 - Some categories

70%

(75%)*

Scope 1 & 2

100%

(96%)*

Carbon avoided

74%

(54%)*

Footprint (tCO2e for US$1m invested)

Scope 1 & 2

60

(55)*

Scope 3

822

(401)*

Carbon avoided

1,575

(943)*

Carbon intensity (weighted average tCO2e/US$m revenue)

Scope 1 & 2

303

(362)*

Scope 3

2,576

(1,700)*

Carbon avoided

7,113

(4,747)*

Renewable energy generated (MWh for US$1m invested)

118

(97)*

EU taxonomy alignment

28%

porfolio alignment (before ‘do no significant harm’ and ‘social safeguard’ assessments)
(41%)*

Impact Management Project framework assessment

From a philosophical perspective, the Impact Management Project’s (IMP) framework is closely aligned to our philosophy regarding sustainability and positive impact. The mapping of the Global Environment strategy against the IMP framework is shown below. We have allocated all companies to the 'contribute to solutions' category as we believe that they are having a positive impact AND we have a robust methodology for quantifying that positive impact.

Investor contribution to impact Act to avoid harm Benefit stakeholders Contribute to solutions
Signal that impact matters      
+ Engage actively     100%
+ Grow new/undersupplied capital markets      

Net-zero pathways

9.8%

reduction p.a.

estimated portfolio-emissions
(Scope 1 & 2) 2019 – 2025
(6.8%)*

11.5%

reduction p.a.

for developed market companies
(8.7%)*

5.3%

reduction p.a.

for emerging market companies
(0.2%)*

12 (52%)

out of 23 companies with science-based targets
(42%)*

19 (83%)

out of 23 companies with carbon-reduction targets
(71%)*

* Equivalent figures from last year's Impact Report are shown in brackets.

Notes on the methodology used in this report

The analysis in this report relates to portfolio holdings as at end-December 2022. This means it includes an assessment for one company that was no longer held in the Global Environment portfolio at the time of publication (Brambles), and does not include assessments for the two companies added to the portfolio in the first half of 2023 (Power Grid of India and Industrie De Nora).

While carbon reporting is improving significantly, it is still subject to a significant time lag. Our previous Impact Report, issued in July 2022 and based on end-December 2021 holdings, used FY2020 carbon data. For this report, we are using FY2021 carbon data. The sources of this carbon data include company reports and estimates calculated in conjunction with our two carbon-data providers, CDP and MSCI. We also used MSCI for Scope 3 estimates.

The estimation of EU taxonomy alignment is based on a mix of company reported and estimated data sourced from AI Clarity.

Finally, we would note that, while the Global Environment strategy’s first ‘SFDR Periodic Reporting’ release, published in Q1 2023, also used portfolio holdings as at end-December 2022, FY2021 carbon data was not available at the time. Consequently, aggregate carbon data in the release will differ to that in this Impact Report.

Further information about our carbon-data methodologies and investment universe is available in the appendix.

Important Information

This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

All rights reserved. Issued by Ninety One.