Global investment manager AllianceBernstein (AB) announced a new climate commitment to achieve net zero emissions, aiming to align its operations and a range of investment strategies with a 1.5 ° pathway by 2050.
AB also announced that it has joined the Net Zero Asset Managers Initiative (NZAM), a coalition of asset managers, committing to support the goal of net zero greenhouse gas emissions by 2050 or sooner. Since launching in 2020, NZAM has grown to include 270 asset managers, representing over $61 trillion in assets.
Seth Bernstein, President and CEO of AllianceBernstein, said:
“AB has been intentional in its approach to responsible investing and in helping achieve a more sustainable future. Our net zero strategy addresses both the corporate and investment levels. It reemphasizes our commitment to ensuring that our people and portfolios all work together to achieve critical climate goals.”
In the short term, the company plans to determine which strategies among fundamental equity strategies, credit strategies, and select other strategies will be the initial focus for the new commitment. Actions will include the definition of metrics and strategy approaches, encompassing engagement, data-driven research and monitoring, and increasing climate-finance exposures.
AB said that utilize engagement to push issuers to commit to climate action, report on emissions, and set emissions reduction goals, while the firm will continue to analyze emissions, carbon intensities, decarbonization metrics and targets, capital expenditure and transition plans, and the carbon footprints of its committed portfolios. On the climate finance side, AB, which currently invests approximately $6 billion in green bonds, KPI-linked securities, and ESG structures, will focus on equity and fixed income climate-finance investments as opportunities present themselves.
Michelle Dunstan, Chief Responsibility Officer at AllianceBernstein, said:
“Our net zero strategy is a result of years of collaboration with peers, clients, issuers and industry leaders. Research has continually informed our approach, while policy has helped shape our strategy and how we engage on behalf of our clients. AB’s net zero journey is well under way, and we’re excited for its next stage—translating our strategy into a systematic approach to fulfilling our commitment.”
As part of its net zero strategy for operations, AB also plans to continue its initiative to locate 85% of employees in green buildings by 2025 and will explore renewable energy options. To provide ongoing transparency, the firm said that it will disclose progress on its transition plan and report on its climate governance, strategy, risk management, metrics, and targets.