St. James’s Place carbon report shows up to 42% lower portfolio emissions

What gets measured gets managed

The impacts of climate change have become critical already. A 1°C global temperature rise is causing climate breakdown and damage to humans, animals and ecosystems. There is a deep financial cost, too — business leaders say four of the five biggest risks they face are environmental, according to a World Economic Forum report¹.

The Portfolio Carbon Emissions Report 2021 measures companies’ carbon intensity, which is their carbon footprint as a proportion of their revenue. We disclose this against weighted sector benchmarks to show how our portfolios compare to relevant industries. All 12 of them mentioned in the report are below their benchmarks, with the Adventurous portfolio the lowest at -42%.

Robert Gardner, Director, Investment Management at St. James’s Place, says: “What gets measured gets managed. By reporting our portfolio carbon footprints, we can identify risk and highlight opportunities for change. This is just the beginning. We’ll continue to align our portfolios with science-based targets to provide greater insights into investments.”

Petra Lee, Responsible Investment Consultant at St. James’s Place, says: “As members of the Net Zero Asset Owner Alliance, we are committed to our portfolios achieving net zero by 2050 or sooner, to help mitigate the most harmful effects of climate change. We are also setting interim targets.”

“We, and our fund managers, actively engage with companies to encourage them to develop less harmful, more efficient practices. Our approach supports the economic transition needed across industries to sustain our planet and its people for future generations. This makes investment sense and helps us use money as a force for good.”

Showing clear impact

Organisations are increasingly measuring and reporting the impact of their responsible-investing practices through standardised global benchmarks.

For example, they report carbon emissions using standards designed by the Task Force for Carbon Financial Disclosures (TCFD).

But not all pledges and actions on climate change are equal. Wealth and fund managers need to research and analyse a wide range of factors to establish the intention and action beneath companies’ statements.

Read the St. James’s Place Portfolio Carbon Emissions Report 2021 and other content on our Responsible Investing page.

Our world is changing faster than anyone predicted. We believe responsible investing has a huge role to play in shaping a better world and building a sustainable future.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

¹ The Global Risks Report, World Economic Forum, 2021

Article photo by Red Zeppelin on Unsplash.