Impax is committed to supporting the PRI's Montreal Pledge. The Montreal Pledge seeks commitment from institutional investors to measure and disclose publically the carbon footprints of investment portfolios on an annual basis.
For 2014 we have been able to calculate our emissions data for 28% of our Listed Equity products (our Specialists strategy). This is a net positive number, meaning that the strategy is, in effect, a carbon off-set.
Our private equity funds generate electricity from renewable sources so for these we have calculated the carbon avoided for both funds.
We have also reported the carbon emissions from our Sustainable Property business, as well as the year on year improvement.
All Impax's listed equity investments are focused on Environmental Markets and solutions to resource scarcity. In our analysis and calculations for our Specialists strategy we go significantly beyond a carbon footprinting methodology, which we believe can be misleading. We take account of our investee companies' carbon emissions, as well as the carbon avoidance of their products and services. We aim to extend our methodology to our other listed strategies in the future.
Specialists strategy: net C02 emissions avoided in 2014: 988,000 tonnes1
The calculation and methodology for the net carbon avoidance has been assured by EY. Our methodology is available here.
Impax manages two renewable infrastructure funds. New Energy Finance Funds I & II. The funds invest predominantly in onshore wind generation in Continental Europe:
- NEF I: 2014 carbon avoidance: 14,000 tonnes
- NEF II: 2014 carbon avoidance: 166,000 tonnes
Total 2014: carbon avoidance: 180,000 tonnes2
Impax’s Sustainable Property team invests in existing UK commercial property and refurbishes properties to high environmental standards and improved energy efficiency. The Impax Climate Change Property fund was established in 2008 with approximately £69m of commitment to buy UK commercial buildings. We work in partnership with the occupiers to improve their resource efficiency credentials. The fund originally comprised 4 assets. The fund is now in divestment mode and currently holds one remaining asset.
In 2015, Impax published a white paper to demonstrate our method for quantifying Green Alpha (the excess returns generated by sustainability and energy efficiency initatives).
- 2014 emissions for the Impax Climate Change Property Fund: reduction of 56 tonnes (2014: 863 tonnes, 2013: 920 tonnes)
- C02 emission reduction in 2014: 6%
1Environmental impact was translated into everyday equivalents using the UK Green Investment Bank’s calculator. The data applies to the portfolio holdings as at 31 December 2015, based on the latest environmental impact data available from investee companies for 2014.
2Calculation based on carbon offset relative to country-specific grid electricity generation. Annual forecast includes some sites currently under development. Source: IPCC / Impax attribution analysis.