Edmond de Rothschild AM to align over €26bn AUM with 2050 net zero goal

Edmond de Rothschild Asset Management revealed today (29 May) that €26bn of its AUM - or 47.5% of in-scope assets - will be managed in line with the attainment of net zero emissions by 2050.

The announcement, which comes one year after it joined the Net Zero Asset Managers (NZAM) initiative, reflects Edmond de Rothschild’s "determination to take concrete action to address the global challenges caused by climate change".

Financing the transition to net zero emissions is a strategic priority for asset managers and Edmond de Rothschild AM said it has asserted its position as a leading player in the climate and energy transition.

With this pledge, Edmond de Rothschild further said it has committed to developing innovative investment solutions addressing
environmental and social challenges, while delivering attractive financial returns for its clients.

Edmond de Rothschild AM highlighted how it has set up "robust strategies" to incorporate environmental, social and governance (ESG) factors into all in-scope investment processes, including:
1. Integration of ESG criteria: Every single investment decision considers environmental, social and governance impacts,
thereby guaranteeing that portfolios are managed responsibly.
2. Active dialogue with investee companies: As an engaged shareholder, Edmond de Rothschild AM uses its influence to
encourage companies to adopt sustainable and transparent practices.
3. Reducing the carbon footprint of its portfolios: Edmond de Rothschild AM measures and actively reduces the carbon
footprint of its investments, aligning its portfolios with the decarbonisation pathways required to achieve Net Zero emissions
by 2050.
4. Participation in global initiatives: By joining the NZAM initiative, Edmond de Rothschild AM has pledged to attaining
ambitious and transparent climate objectives, working with other major financial industry players to accelerate the transition towards a low carbon economy.

The Net Zero Initiative is an international group of over 300 asset managers weighing around $60,000bn in AUM. Signatories of the initiative have committed to supporting the goal of achieving Net Zero by 2050, consistent with the efforts deployed  internationally to contain global warming to 1.5°C.

Edmond de Rothschild AM has also set its own pathway - including interim net zero targets for 2030 - for each of the main asset classes covered by the group:

Within the in-scope liquid assets5 managed by Edmond de Rothschild AM, 70% are committed to be aligned with a 50% reduction in carbon intensity by 2030, compared to 2019. These committed liquid assets weigh €15.2bn.

Regarding its unlisted investment activities (Private Equity, Infrastructure Debt, Real Estate), Edmond de Rothschild has committed to aligning 68% of in-scope assets, weighing a total €10.8bn - or 40% of the total assets committed to netzero.

The goal is to increase the percentage of assets managed in line with the attainment of net zero emissions by 2050, relying on standards relevant to each asset class and approved by the IIGCC group.

Nathalie Wallace, chief responsible officer said: “By unveiling these ambitious goals for 2030, Edmond de Rothschild Asset Management has asserted its position as a leading player in the climate and energy transition.

"This translates into decisions to finance and invest in assets believed to offer “solutions” to the issues of climate change. This is already the case in Belgium, for example, where our infrastructure debt strategy BRIDGE has refinanced a battery storage system, or through our Gingko Private Equity strategy, which specialises in decarbonisation and the regeneration of industrial wastelands”.