Tribe Impact Capital (Tribe), the first UK wealth manager to announce a net zero target by 2025, has revealed its carbon and greenhouse emissions across the business.
Following Tribe’s commitment to setting a Science Based Target, alongside its net zero pledge, Tribe is publicly accountable for expediting its approach to climate change and to reducing both the warming potential and the carbon emissions of its investments.
Using proprietary methodology from MSCI Carbon Delta, Tribe has been able to assess that the indicative warming potential of its medium risk multi-theme portfolio was 2.78˚C last year, over 0.25˚C less than MSCI ACWI’s portfolios at 3.05˚C. In addition, Tribe has unveiled its investments’ carbon emissions, standing at 84.6 tonnes of total absolute carbon emitted per £1m invested. This is 45% less than MSCI ACWI’s figures of 153 tonnes of total absolute carbon emitted per £1m invested.
Tribe has also implemented a cross asset class quarterly performance diagnostic that measures and manages the carbon across its business. This research allows Tribe to manage and reduce (via active ownership and engagement with funds and businesses) and then, and only then, offset its emissions.
Commenting on Tribe’s steps to combat climate change, Chief Impact Officer, Amy Clarke said, “The global finance sector, wealth and asset management in particular, has a significant role to play in reducing absolute levels of greenhouse gas emissions and the associated global warming. We all have to go further in our efforts as an industry to reduce our Scope 3 emissions, alongside our Scope 1 and Scope 2.
“It is essential for us to recognise our responsibility and align our interests with a broader group of stakeholders to ensure that we are acting as sustainable guardians – both for our clients’ money and for wide society.
“We have, as a result taken a number of steps to do this. They include ensuring any fund managers disclose their sustainability rationale for their investment choices including how they intend to deliver the Paris Agreement and demonstrate how their choices reflect and deliver these sustainability rationales; championing the deployment of SBTs in the funds we use and with the companies in which we directly invest; measuring and reporting our greenhouse gas emissions, both direct and indirect, across all areas of the business; conducting our own Paris Alignment research on each and every investment we make for our clients; developing our own SBT; and looking at a best in class Oxford Offsetting Principles compliant approach to our carbon offsets.
“While we are pleased with some of our early achievements, we have a long way to go. We hope that our results will encourage other players in this sector to follow our lead and pledge to disclose and minimise their emission levels.”