Section 7.2.3. of the FINANCIAL SECTOR SCIENCE-BASED TARGETS GUIDANCE outlines outlines the engagement practices recommended for investment consultants, including investment managers, with a series of recommended actions. As an insurer, investment managers manage a portion of our assets according to the mandates that we have provided.
Given the recommendations in 7.2.3, am I correct in understanding:
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Asset owners are encouraged to engage with IM’s on areas discussed in 7.2.3., but otherwise assets managed by IM’s are outside any target scope?
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In baselining emissions, am I correct then in understanding that assets managed by IM’s are outside this scope once again?
A few additional questions:
3. All other in-scope assets for the SBTi are as outlined in table 5.2. I’ve noticed that funds are out scope, or optional in the case of funds of funds.
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Investment-Linked Products, which are savings linked insurance products are also out scope. This is where a customer’s investments are invested in a fund/vehicle of their choice managed by a third party.
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Should the portfolio coverage target be framed or presented by sector/asset class? Or is it just one engagement target for all issuers not covered by an SDA or other approach?
Thank you