German investment manager KGAL announced today that it is committing to a series of sustainability initiatives that will see the firm become climate neutral in its own operations by 2021, and have a net zero emissions investment portfolio by 2050.
KGAL CEO, Gert Waltenbauer, said:
“Living up to our mission statement means offering sustainable products for our investors, but also becoming a sustainable asset manager that contributes to a sustainable society.”
As part of its new commitments, KGAL aims to reduce emissions per employee by 5% annually over the next 10 years. This will be in addition to its achievements in 2019 of eliminating 1,700 tonnes of CO2 emissions, a 13% year-over-year reduction, achieved primarily by minimising air travel and providing extensive opportunities for mobile working.
According to KGAL, the new sustainability strategy aligns the firm with the Paris Climate Agreement as well as with European and German long-term climate goals aimed at limiting the increase in the global average temperature to below 2°C and to deliver a carbon-neutral economy by 2050. KGAL signed the UN PRI in 2018, and its 2010 mission statement explicitly incorporates environmental protection requirements into the company’s goals.
“KGAL has had a longstanding commitment to sustainability. We are proud of our progress in limiting our carbon footprint but realise we must do more.”
KGAL’s €20 billion investment portfolio encompasses real estate, aviation and renewable energies. Its renewable energy investments supply 1.5 million people with over 2 TWh of green electricity per year. KGAL stated that it intends to substantially increase the amount of green energy generated by its managed investment portfolio.
Robert Sattler, Sustainability Officer of KGAL Group, said:
“Our new climate-neutrality targets and the publication of our overall climate strategy underline our ambition to contribute to holistic solutions for the challenges of today and tomorrow.
“Our latest UN PRI rating shows that we are on the right track and we will continue to increase our efforts in this extremely important area of our business.”