Jupiter Asset Management
We helped the global asset management firm define and set ambitious targets to decarbonise its global investment portfolio while cementing its journey towards net zero.
Practical implementation of NZAMI guidance for asset managers.
AUM net zero aligned
Jupiter’s holdings assessed
The Company
Jupiter is a specialist, high conviction, active asset manager, who believes in empowering portfolio managers to help solve the pressing ESG challenges facing all businesses today. The firm’s credentials are complemented by an ongoing ambition to drive innovation in the fields of ESG and sustainable investment. It is a constituent member of the FTSE 250 Index, FTSE4Good Index, and a signatory of several key initiatives such as the UN Principles for Responsible Investment (UNPRI) and the Net Zero Asset Managers initiative (NZAMI).
The Challenge
Jupiter became a signatory to the NZAMI in March 2021 and needed help in defining exactly what the commitment meant for their operations and investment process and how to make the target an achievable reality. This meant translating the guidance for their organisation, tailoring it to their investment profile and processes and setting credible targets that would be both feasible to achieve as well as standing up to scrutiny.
Why Jupiter Brought in Carbon Intelligence
Carbon Intelligence has a strong track record in helping organisations across all industries reduce emissions throughout their value-chain in line with the Paris agreement. The consultancy and data firm submitted the world’s first approved science-based target aligned with 1.5C on behalf of their client Tesco. Jupiter had already worked with Carbon Intelligence in their CSR programmes and appointed the team again as their partner in summer 2021 to use their expertise in carbon reduction across operations and asset classes. The firm needed a partner with both technical depth of expertise in carbon and the strategic ability to connect portfolio and operational activity across a complex organisation.
“Carbon Intelligence assembled a team of dedicated specialists to help us establish the foundational assessment of our NZAMI responsibilities.” Ashish Ray, Head of Stewardship, Jupiter Asset Management
The Programme
The Carbon Intelligence team quantified ambitious 2030 and 2050 net zero targets for Jupiter to reduce Scope 3 emissions arising from its investment portfolio. For materially polluting sectors, tools developed by Carbon Intelligence enabled Jupiter to track sector specific decarbonisation pathways determined by the One Earth Climate Model (OECM). The targets were calculated using the following Net Zero Investment Framework (NZIF) methodology:
- Setting portfolio-level decarbonisation targets
- Asset alignment in line with net-zero plans and associated ‘Engagement’ targets
Over 2,600 holdings across Jupiter’s 71 funds were assessed, allowing Jupiter to identify:
- The investment hotspots where GHG emissions were highest
- How to ensure the alignment of these heavy emitters in setting their own Net Zero strategies
The team offered a training and engagement programme to educate Jupiter’s fund and portfolio managers, operational teams and investee companies on the latest climate science knowledge, empirical evidence, and market developments. The team conducted bespoke interviews with Jupiter’s portfolio managers and operational teams, capturing their insights and expectations to provide tailored feedback on what targets to disclose while avoiding substantial risks.
Key benefits
Attracts ESG investment
Board-level confidence
Demonstrates leadership
“Carbon Intelligence collaborated with Jupiter’s Stewardship Team and contributed to portfolio analysis, briefing sessions with numerous investment strategies spanning different geographies, asset classes and investment styles. In addition, through this collaboration with the Stewardship Team, Carbon Intelligence has also helped to facilitate Board level and Executive Committee training around NZAMI. It was important for Carbon Intelligence to offer challenge so we can fully absorb and fulfil our duties throughout the firm.” Ashish Ray, Head of Stewardship, Jupiter Asset Management
Outcome
Thanks to the work done across all assets considered in scope, Jupiter’s targets were submitted, approved, and disclosed by NZAMI in their first wave of signatories.
The Carbon Intelligence team continues to support the Stewardship team at Jupiter in the implementation of portfolio level emissions and the Operational group on wider Scope 1, 2 and 3 targets. Together they are working on reporting in alignment with the best practice recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
Jupiter’s AUM aligned with the NZAMI guidelines
AUM net zero aligned