Liontrust Sustainable Investment Annual Review 2022 - Flipbook - Page 31
Since beginning this initiative in early 2020 we have:
Contacted
93
Met with
companies overall
72
of these for detailed discussions
about decarbonisation targets
In 2022: we met with 16 of these for detailed discussions about decarbonisation targets
59%
24%
41%
Of these 11 companies are
responsible for 59%
of emissions
24% committed to
1.5 or 2 degrees by 2030
41% are involved in the Science
Based Target Initiative (SBTi) or
have committed to be
Case study: American Tower
American Tower is an owner and
operator of wireless communications
towers worldwide with a high
proportion of its towers in emerging
markets where it provides access to
communications and is exposed to our sustainable investment theme
of Connecting People.
We contacted and discussed the company’s climate ambitions with
an objective to push the company to adopt absolute emissions
reduction targets, aligned with science-based targets and limiting
global warming to 1.5 degrees, consistent with the Paris Agreement.
We challenged the company on its climate crisis strategy and
explained that it is one of the bigger emitters across the portfolios it
is held in. American Tower had just announced a climate strategy
and goals which have indeed been set and certified by the Science
Based Targets initiative (SBTi), however, this is currently set to a
2-degree limit, so while there has been progress, we expressed the
need for targets to be 1.5 degree-aligned and for nearer-term targets
to be set to better monitor progress.
American Tower hopes to align with 1.5 degrees within the decade
and on nearer-term targets, and has a renewable target for 2025,
but highlighted the challenge in operating in emerging markets and
specific limitations; moving from diesel generators to solar in African
markets is a clear priority.
We also talked about its assessment of physical climate risks and
the scenarios used. American Tower used two IPCC scenarios and
looked at the impact of climate-related natural disasters. About
1% of its Towers portfolio could be exposed in the future and we
discussed the costs of this.
We are reassured of the company’s approach on climate risks and
ambition on emissions reductions targets. It was important to meet
with the sustainability team at the company’s recent acquisition
of CoreSite, a major US data centre player, and understand its
standalone climate strategy and how it might be integrated over
time. In 2023, we will continue to push for more ambition when
it comes to a timeframe for setting targets that are aligned with
1.5 degrees.
All use of company logos, images or trademarks are for reference purposes only.
Liontrust Sustainable Investment: Annual Review 2022 - 31