Climate strategy for an Asset Manager (NZAM)

The Story : A leading asset manager with a diverse portfolio across listed and unlisted assets, managing over 50 billion euros, recognized the urgent need to align with global decarbonization goals. Their ambition was clear: to develop a climate strategy that would not only meet 2030 and 2050 targets but also pave the way for a sustainable financial future.

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What was at Stake ?  

The AM aimed to set decarbonization goals that were both bold and feasible across various asset classes, ensuring long-term viability.The challenge was tobalance these ambitious objectives with the practicalities of fund management to guarantee both compliance and growth.

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The Challenges we encountered

The main challenge was to tailor net-zero methodologies to each asset class effectively.The asset manager needed to ensure that every stakeholder, from fund managers to marketing teams, understood the strategic importance and operational nuances of adopting these methodologies. The choice of the net-zero methodology is crucial since the 2030 and 2050 targets are defined according to the methodology followed.

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The solutions

To tackle this, Moonshot organised several detailed workshops with the asset manager operational teams.

The aim was to present, evaluate, and ultimately select the most suitable net-zero methodologies. These sessions were designed to foster a deep understanding and to kickstart strategic planning, ensuring that each team was equipped to implement the chosen strategies.

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Outputs

The workshops led to two primary outcomes: the establishment of specific net-zero goals and the creation of comprehensive summary documents. These documents detailed the net-zero strategy's implications for asset management, marketing, and broader stakeholder engagement, including clients and investors.

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Client satisfaction

Moonshot approach was well-received for several reasons. First, the ability to engage with and understand the concerns of asset managers was praised. Second, the ambitious nature of the net-zero goals set the firm apart in the market. Lastly, the internal buy-in for the net-zero objectives was strong, indicating a successful alignment of the firm's operational direction with its strategic vision.

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Go deeper : Focus on net zero methodologies for private equity firms

There are 4 main methodologies on which PE funds can rely to determine and deploy net-zero objectives :

- Net Zero Investment Framework - Component for Private Equity

- NZAOA Target-Setting Protocol

- Private Equity Sector Science-based Target Guidance

- Private Markets Decarbonisation Roadmap

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Watch our video on NZIF : Comment faire pour aligner un portefeuille de private equity à l'Accord de Paris ? 

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