GAM Investments' Net Zero Alignment Assessment Tool (NZAAT) aims to prioritise the investor's engagement based on contribution of companies to its financed emissions and their alignment assessment.
Developed and launched last year NZAAT is an in-house tool designed to support GAM's climate plan and net zero engagement strategy. It identifies specific steps to shape GAM's engagement objectives, identified as part of a top-down review and bottom-up portfolio reviews, such as principle adverse impacts (PAI) reviews. It will then assess progress on net-zero alignment, prioritise and support engagement, and monitor progress against its targets at an aggregate level and portfolio level.
GAM is committed to reaching net zero emissions by 2050 at the latest, which set the context for the development of NZAAT. It also developed interim 2030 targets, last year, which involve approximately one-third of its investment management assets under management, including 75% of assets under management in material sectors to either be achieving net zero, 'aligned' to net zero or 'aligning' to net zero.
These targets cover all funds classified as equity or corporate fixed income, representing 32% of GAM's assets. However, NZAAT allows for coverage of a broader universe of equity and corporate debt holdings.
"Climate change is changing the investment landscape, making a sound understanding of how well companies are positioned in the net zero transition increasingly important," said Stephanie Maier, global chief sustainability officer at GAM Investments. "This award is a testament to the team's commitment to building innovative tools to support investment decisions and stewardship for the benefit of our clients."
The development of NZAAT was based on guidance from bodies including the Institutional Investors Group on Climate Change (IIGCC) Net Zero Investment Framework (NZIF) and the Net Zero Investment Toolkit.
"Structured approach in an area where most asset owners and managers struggle," commented one Sustainable InvestmentAwards judge.
