London, 31 May 2022
Our ambition is to be the global leader in sustainable asset management as we seek out the opportunities that this creates for our investments and our clients. To achieve this, we know that action, supported by evidence, is the most important step. We have reached a number of significant sustainability milestones in the last few months and want to update you on our progress and share some key highlights.
We recently published our first Stewardship Report, and we will soon welcome our new Chief Sustainability Officer. Also, this week, the Net Zero Asset Managers (NZAM) initiative will release its second progress report showing what has been achieved by signatories, including highlighting the positive progress Macquarie Asset Management (MAM) has made across our global portfolio since we became a signatory to the initiative just 12 months ago.
We encourage you to read on for further detail, and we look forward to continuing to update you on our progress in the coming months.
Macquarie Asset Management
NZAM’s second progress report will show MAM has committed to manage 43% of its assets¹ in-line with NZAM’s criteria².
In our Private Markets businesses, this includes implementing decarbonisation programmes across 100% of our infrastructure, renewable and agriculture portfolio, and more than 80% of our activities in the real estate sector. In our Public Investments portfolio, it includes funds where we have established measurement and reporting mechanisms that are accompanied by proxy voting and company engagement.
Assets which are yet to be covered by NZAM’s criteria are those where it is currently difficult for us to effect change. These are primarily asset classes where there is limited data available or means for us to influence. Where possible, we are incorporating aspects of our net zero framework and continue to collaborate with peers and industry bodies to improve methodologies and data availability.
Importantly, the percentage of our total committed AUM covered by NZAM represents how far we have come – not where we expect to be by 2040. Rapid change is needed, but not easy. These commitments are complex and influenced by many factors. However, we remain focused on partnering with our investors, portfolio companies, regulators, peers, and a wide range of other stakeholders to drive this critical work.
We will continue to report our decarbonisation progress annually through the Principles for Responsible Investment (PRI) and the Carbon Disclosure Project (CDP), as well as in our MAM Sustainability and Stewardship Reports. We will also review our committed AUM at least every five years in line with NZAM’s criteria.
We recently published our first Stewardship Report covering both our Private Markets businesses and Public Investments portfolios within our asset management platform. This report details our stewardship approach across different asset classes, providing an overview of our key activities and progress in 2021, while sharing insights into our priorities and plans.
Over the past year, notable actions have included growing the number of our portfolio companies and funds participating in GRESB. This has enabled our teams to have more focused conversations to improve the sustainability and long-term financial performance of our portfolio. Our colleagues have also led collaborative efforts to improve investee company performance on climate change and the United Nations’ Sustainable Development Goals through our Climate Action 100+ and the World Benchmarking Alliance memberships.
We recognise there is always room for improvement, as we continue to develop our stewardship approach and welcome feedback. Our Stewardship Report highlights some of the areas where work is already underway to enhance our ESG governance processes, disclosure, and monitoring of stewardship practices such as engagement and proxy voting.
We are excited to welcome Kristina Kloberdanz as our new Chief Sustainability Officer, who will lead our ambitious integration of sustainability and ESG. A leading voice on sustainability, Kristina has more than two decades of professional experience, and was previously Chief Sustainability Officer for Mastercard. She also led IBM’s global corporate responsibility programme and reputation initiatives.
We are also delighted that Johnathan Medina has joined us as our Head of Diversity, Equity and Inclusion (DE&I). Johnathan joins us from Apax Partners, where he was responsible for developing its inclusion and diversity function and strategy. Prior to this Johnathan was with Accenture, where he cofounded the firm’s inclusion and diversity practice.
Kristina and Johnathan’s appointments enhance our capability in these key focus areas and reflect our commitment to sustainability, including DE&I being integrated across everything we do.
For investment professional and institutional investor use only. Not for use with the public.
Investing involves risk, including the possible loss of principal.
Past performance does not guarantee future results.
Macquarie Asset Management (MAM) is the asset management division of Macquarie Group. MAM is a full-service asset manager offering a diverse range of products across public and private markets including fixed income, equities, multi-asset solutions, private credit, infrastructure, renewables, natural assets, real estate, and asset finance. The Public Investments business is a part of MAM and includes the following investment advisers: Macquarie Investment Management Business Trust (MIMBT), Macquarie Funds Management Hong Kong Limited, Macquarie Investment Management Austria Kapitalanlage AG, Macquarie Investment Management Global Limited, Macquarie Investment Management Europe Limited, and Macquarie Investment Management Europe S.A.
Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.
All third-party marks cited are the property of their respective owners.
© 2022 Macquarie Management Holdings, Inc.