Net zero

Our commitment to a net zero future

Green Investment Group’s (GIG) mission is to accelerate the transition to net zero. Since our inception in 2012, we have committed and arranged finance into green projects and operated within a corporate governance framework which requires our investments to positively contribute to specific green objectives.

While our projects are designed to accelerate the transition to net zero, we recognise they produce greenhouse gas emissions resulting from equipment manufacturing, construction, operations and decommissioning activities. Therefore, building on our existing governance framework, in May 2021, we committed to an additional series of net-zero aligned actions.

In April 2022, GIG went on to join Macquarie Asset Management (MAM). As part of MAM, we have the opportunity to deliver even greater impact by mobilising institutional capital into the energy transition and providing clients with access to a broader range of green investment opportunities.

Importantly, GIG now aligns with MAM’s net zero commitment. We will invest and manage our portfolio in line with global net zero scope 1 and 2 greenhouse gas (GHG) emissions by 2040, where we have control or significant influence.¹ Where we do not have control or significant influence, such as in our managed portfolio of public securities, we will continue to support the   goals of the Paris Agreement² in a manner consistent with our client-guided fiduciary and regulatory responsibilities.

While some legacy investments will continue to access balance sheet capital, we now primarily invest through MAM-managed funds on behalf of our clients. To reflect this new fiduciary asset management role, we have refreshed our net zero strategy to align with MAM’s net zero commitment. We will also continue to work with our legacy balance sheet assets to ensure they are on a clearly defined path towards ‘net zero readiness’ but we will no longer set a balance sheet portfolio target. Net zero readiness involves the asset or portfolio company understanding their emissions profile and feasible net zero pathways, allowing the future owner to manage the asset or company in line with their own net zero targets. 

This update follows the publication of our financed greenhouse gas (GHG) emissions through 2021 (GIG Financed Emissions Report, December 2022) and is focussed on our new net zero strategy for 2023 and beyond.

As required by our governance framework, we will continue to report the green impact of our investments, including GHG emissions avoidance. You can find details of our green impact, including information on our assessment methodology in our Progress Report 2022. 

Outlook to 2023 and beyond

In line with our mission, and as the world’s transition to net zero takes shape, we will continue to develop our approach to accelerating that transition. This means investing in new technologies and offering new services that support the energy transition, especially where we can help clients and partners in emissions intensive sectors to decarbonise. GIG’s balance sheet financed emissions will be considered as part of Macquarie Group reporting, along with portfolio-level scenario analysis. Reporting on GIG funds’ financed emissions will be included as part of MAM’s net zero reporting.

Our approach to readying our balance sheet assets (i.e. net zero readiness) and assessing decarbonisation strategies will be reviewed regularly to ensure they remain aligned with the most recent climate science and global policy requirements.

1. MAM generally only has influence over scope 1 and 2 emissions. However, to the extent possible, in line with the Net Zero Asset Managers initiative guidance, MAM intends to support assets where it has control or significant influence to reduce their scope 3 emissions.
2.  The Paris Agreement's central aim is to strengthen the global response to the threat of climate change by maintaining a global temperature rise this century well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5°C. The Intergovernmental Panel on Climate Change concluded the need for net zero emissions by 2050 to remain consistent with 1.5°C.