The guidance allows banks’ to optionally include targets relating to asset management divisions. What is the guidance for an investment management company that invests its own funds through one subsidiary and manages funds under discretionary mandates through a separate subsidiary. Would the subsidiary that manages fund under discretionary mandates have to be included in science-based targets set by the parent company?
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Yes, the subsidiaries also need to set targets if the investment management company in your example sets a target. All subsidiaries and divisions always have to be included in a target, provided the assets/activities are in scope (table 5.2, p. 55 in the guidance) when a company sets a target on the group level. The only exception to this rule is currently the one you mention for banks and their asset management operations, which is currently optional.