Global asset manager also commits to net zero investing

Global investment manager Invesco announced a new sustainable investment goal, committing to integrate ESG into all investments by 2023. The new pledge follows the recent announcement by Invesco that it has joined the Net Zero Asset Management initiative, committing to achieve net zero emissions in its investments by 2050 or sooner.

Invesco’s ESG integration commitment was made with the release of the company’s its 2020 Investment Stewardship Annual Report, outlining the asset manager’s company engagements, proxy voting approach and social equity and climate change focus areas. In 2020, Invesco more than doubled its company engagements, holding over 2,000 meetings. Key topics addresses for global ESG team engagements included the climate transition, executive compensation, and ESG disclosure.

According to the new report, Invesco currently integrates ESG for approximately 75% of its strategies, based on an internal framework the firm uses to measure the level of ESG considerations as an influence in investment decision making. By 2023, Invesco aims to integrate ESG into 100% of its AUM.

Cathrine de Coninck-Lopez, Global Head of ESG for Invesco, said:

“The past year has been a time of uncertainty; however, our focus on corporate governance and being good stewards has not wavered. We continue to remain committed to engaging with clients in a meaningful way to help navigate short term challenges, long term risks and new opportunities. ESG is integrated into everything we do, and it goes to the heart of the way we are working with our clients to realize the value they seek.”

Late last month, Invesco committed to net zero investing, signing on to the Net Zero Asset Management initiative, a coalition of asset managers committing to support the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5°C. Signatories to the initiative commit to a series of actions including setting an interim target for the proportion of assets to be managed in line with the net zero goal, prioritising the achievement of real economy emissions reductions within the sectors and companies in which they invest, creating investment products aligned with the net zero goal, and confirming that policy advocacy is supportive of the net zero target.

Glen Yelton, Head of Client Strategy for North America at Invesco, said:

 “Joining the Net Zero Asset Managers alliance initiative commits us to review our internal targets every five years with the aim of increasing the proportion of assets covered until 100% are included, by 2050 or earlier. We are proud of our achievements in recent years to help address climate change and we recognize that systemic change is only possible by working closely with other institutional investors. Invesco is strongly committed to achieving a net-zero future.”