Liontrust Sustainable Investment Annual Review 2022 - Flipbook - Page 30
2022 progress and next steps
At the end of 2022, we prioritised five proactive engagement initiatives in collaboration with our
Advisory Committee for the year ahead. The following details some of the highlights across these areas.
In our experience, continued engagement over a longer time period is more likely to achieve better
outcomes than over a yearly reporting cycle, so these build on work we started in previous years.
2022 Initiative
Description
We said we would:
In 2022:
Preventing
irreversible
damage from the
climate crisis
To encourage companies
to adopt strategies to
reduce absolute carbon
emissions at a rate
consistent with limiting
global warming to 1.5
degrees. We want to
ensure companies can
change in a timely, just
and profitable way and
have robust strategies
and targets in place to
achieve this.
• Continue to speak to
investee companies
about decarbonisation
strategies
• Continue to speak to
• We met with 16
investee companies
companies for detailed
about decarbonisation
discussions on their
strategies and
decarbonisation
monitoring performance
strategies and
on near-term absolute
monitoring of neareremissions reduction
term reduction targets.
targets, ensuring that
This brings the total
we have engaged
number of engagements
with the remaining
on climate change to
companies that
93 since we began this
contribute towards 80%
initiative in early 2020.
of fund emissions and
The companies we have
asking for split gas
engaged with account
accounting for methane
for approximately 59%
where appropriate.
of the direct emissions
in the equity funds (as at • As part of the Net
Zero Asset Manager
Dec-2022)
Initiative (NZAMI),
• Of the companies in
we have committed
our portfolios, 41%
to reduce the direct
(89 out of 218 entities
emissions (scope 1 and
held as at the end
2) of all SF funds to
of December 2022)
emit 25% less by 2025
have or plan to commit
and 50% less by 2030
to decarbonise their
as compared to the
business in line with a
fund benchmarks as at
science-based target.
the end of 2019. This
means monitoring our
• We met with three
funds and disclosing
banks to discuss how
data and our progress
they are financing the
on NZAMI.
transition – HSBC,
Nationwide and
• Increase the number
Paragon Banking.
of investee companies
• Monitor performance
on near-term absolute
emissions reduction
targets
• Increase the number
of investee companies
that are aligned with
the Paris Accord
• Challenge banks on
financing the transition
In 2023, we will:
that are aligned with
the Paris Accord
For details on our work on the 1.5 degree Transition Challenge, see p40. The headline numbers are summarised below.
30 - Liontrust Sustainable Investment: Annual Review 2022