Our commitment to net zero

Ninety One is a signatory to the Net Zero Asset Managers Initiative, working with investor networks, companies and our clients to support the goal of net zero emissions by 2050 or sooner.

The mission to reduce carbon must include the entire world.

Climate change is a priority issue for Ninety One, informing our approach to investing as well as the way we operate our business.

Ninety One formally pledged its support for the Task Force on Climate-related Financial Disclosures (TCFD) in September 2018. We publish an annual TCFD Report, which sets out how we disclose our exposure to and management of climate risk, using the TCFD framework. Read the latest report here.

We joined the Net Zero Asset Managers Initiative in 2021, acknowledging the urgent need to accelerate the transition towards global net zero emissions and for asset managers to play our part to help deliver the goals of the Paris Agreement and ensure a just transition. In joining, we committed to work for a transition for the whole world, including emerging markets.

Can we ensure real world emissions reductions?

Debating net zero for emerging markets, portfolio vs real world carbon and the unintended consequences of carbon intensity measures.

The Net Zero Asset Managers Initiative and our approach to net zero

By joining the Net Zero Asset Managers Initiative, we seek to contribute to the quest to help curtail disruptive climate change and ensure the long-term sustainability of our planet.

This commitment complements our support for the Paris Agreement and global efforts to limit warming to 1.5°C. We are also aligned with the 17 specific goals in the United Nations 2030 Agenda for Sustainable Development. For us, this is not box ticking or virtue signalling.

In joining the Net Zero Asset Managers Initiative, we have also committed ourselves to a special task. We believe the world needs an inclusive transition plan that works for all its 7.9 billion people. A drive to net zero that excludes, intentionally or otherwise, any place or enterprise, could not result in net zero at all. So, to us, the mission to reduce carbon must include the entire world.

The carbon-intensive emerging market economies in particular need time, encouragement and resources to adjust. These economies, after all, are not responsible for the bulk of emissions to date. So, at Ninety One, our task is to make the case not only for a transition, but for a just transition.

In our drive for low-emitting portfolios, we intend to do more than reduce carbon by simply constructing portfolios that exclude high-emitting countries and companies. We believe that if we mechanistically apply an exclusionary process to achieve net-zero targets, we would likely create portfolios concentrated in developed markets and asset-light industries, without the transition focus on the rest. As a result, we might end up with places and sectors abandoned to their own devices.

Instead, we seek to differentiate between the reduction of ̒portfolio carbon’ and the reduction of carbon emissions in the real world. Currently, companies are incentivised to divest carbon-heavy assets to report declining carbon intensity. These carbon-heavy businesses continue to operate, but often outside the public eye. If excluded, they will increasingly operate outside the scrutiny of regulated public markets and to the detriment of society. At the same time, countries are incentivised to ‘offshore’ carbon emissions to other countries, which does not change domestic consumption patterns.

As currently measured, the carbon footprint of a portfolio depends far more on sector and regional allocations than on the progress of the underlying companies. A narrow focus on lowering ‘reported carbon intensity’ is therefore likely to divert capital out of the developing world. This could deny large parts of the world the capital needed to build a cleaner, greener economy. It would also deny developed-market savers access to the dynamism of emerging markets and the associated potential return opportunity. In the past 15 years, exposure to fast-growing emerging markets has provided return and diversification benefits to developed-market savers.

At Ninety One, we believe in active engagement and encouragement towards a transition. As a paper from Imperial College noted, “Not all firms can go green, but they can all get engaged in transition”. Instead of risking a disorderly exit from carbon-intensive economies, sectors and companies with a high carbon footprint, we will, where we can exert influence, actively allocate to companies and countries that can be encouraged to deliver on transition plans.

Our approach should be an expression of our purpose: investing for a better tomorrow. We aim to do this within our three-dimensional sustainability framework: Invest, Advocate, Inhabit.

Essentials of net-zero investing
Episode 0427 min20 Jul 2023
Sovereign carbon assessment

Carbon data is backward looking and needs a better measure at a sovereign level explains Portfolio Manager Nicolas Jaquier. In an interview with Sustainability Director, Daisy Streatfeild, he outlines the unique challenges he and the team face when measuring and assessing the net-zero impact of countries and how to align portfolios to this goal.

Important Information

The information may discuss general market activity or industry trends and is not intended to be relied upon as a forecast, research or investment advice. The economic and market views presented herein reflect Ninety One’s judgment as at the date shown and are subject to change without notice. There is no guarantee that views and opinions expressed will be correct and may not reflect those of Ninety One as a whole, different views may be expressed based on different investment objectives. Although we believe any information obtained from external sources to be reliable, we have not independently verified it, and we cannot guarantee its accuracy or completeness. Ninety One’s internal data may not be audited. Ninety One does not provide legal or tax advice. Prospective investors should consult their tax advisors before making tax-related investment decisions.

This communication is provided for general information only and is not an invitation to make an investment nor does it constitute an offer for sale. Investment involves risks. This is not a recommendation to buy, sell or hold a particular security. No representation is being made that any investment will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided. The securities or investment products mentioned in this document may not have been registered in any jurisdiction.

In Hong Kong, this communication is issued by Ninety One Hong Kong Limited and has not been reviewed by the Securities and Futures Commission (SFC).

Except as otherwise authorised, this information may not be shown, copied, transmitted, or otherwise given to any third party without Ninety One’s prior written consent. © 2025 Ninety One. All rights reserved.

Past performance figures shown are not indicative of future performance. Investors are reminded that investment involves risk. Investors should refer to the offering documents for details, including risk factors. This website has not been reviewed by the SFC. 

By clicking on the hyperlink of Investor relations below, you are leaving this website with information specific for retail investors in Hong Kong and entering the global website.

Please note that the global website is not intended to target Hong Kong investors. It has not been reviewed by the Hong Kong Securities and Futures Commission (“SFC”). The website may contain information on funds and other investments products that are not authorised by the SFC and therefore are not available to retail investors in Hong Kong. The website may also contain information on investment services / strategies that are purported to be carried out by a Ninety One group company outside of Hong Kong.

Any product documents and information contained in this website are for reference only and for those persons or entities in any jurisdictions or country where the information and use thereof is not contrary to local law or regulation.

Issuer: Ninety One Hong Kong Limited
Email: [email protected] 
Telephone: (852) 2861 6888 
Fax: (852) 2861 6861