I work for a renewable-focused investment team of an asset management company. Recently, we are working on a new project/blind fund targeting renewable assets and trying to find an effective way to publicly show that the fund contributes to the global new-zero initiative so that we can invite more investors, who emphasize the global climate change (or ESG), in the fund-raising process.
By chance, we found that SBTi could help our fund achieve that goal. Yet, it seems that only corporations could sign up for SBTi and there is no program for funds. Is there any way our fund can join SBTi and make a good impact on the net-zero initiative?
Thanks for your question and welcome to the community.
Your understanding is correct. However, you are most welcome to use our methods for setting emissions reduction targets for your fund and to use this e.g. for engagement with your portfolio companies to drive real world emissions reduction. However SBTi will not be able validate and approve your fund’s target.
In short, SBTi is a company wide initiative that is supposed to make sure the whole company changes its climate profile and reduces real world emissions, not just highlighting/marketing the green investments or activities they are involved in.
This is one of the reasons we are focusing on targets rather than accounting for the current emissions profile, to allow companies to invest in and lend to business/activities that are in the transition from brown to green. This can mean that companies setting SBTI-approved targets are increasing their current emissions in the short term to achieve a bigger real world reductions from its portfolio companies later.
So, in your case, you need to set a target for the whole asset management company to get this approved by the SBTi.