Inclusion of AUM of asset manager in target setting

Criteria
1

Hello,

I would like to confirm whether my understanding of the “asset under management” criteria is correct.

  1. Asset managers shall always include AUM (under discretionary mandates) in its target submission to SBTi in line with FI-C15 and FI-C16.

  2. When targets are set at a financial holdings’/group’s level and if the group has an asset manager as a subsidy, regardless if what type of financial institutions the holding company includes, the asset manager’ AUM can be excluded in the target scope while the proprietary investment of the asset manager (if any) must be included in the target scope.

I found that if an asset manager is a subsidiary of a bank(parent company), the AUM of the asset manager can be excluded if the exclusion is explained. I checked this at: Please can you further clarify which off balance sheet assets are required to set targets on for SBTI. This is still not clear to me in the answers provided to date

Many thanks,
YoungWoo

2

Hi @YoungWoo ,

This is currently how the criteria works. Banks asset management divisions’ AUM can be excluded, but need to be disclosed. In all other cases, asset management AUM shall be included in the FI’s emissions reduction target. This may be changed in future revisions of the SBTi framework for Financial Institutions.

3

Thank you very much for your quick guidance.