GMO has released its initial net zero targets and transition plan.

GMO has submitted its initial net zero targets and transition plan, including:

Reducing the carbon intensity of included investment portfolios by 65% by 2030, compared to levels in GMO’s baseline year of 2019, and increasing the percentage of GMO assets covered under this target from 53.5% to 60% by 2025. GMO plan to grow the proportion of their investments in companies that have put in place science-based targets in line with net zero, engaging with issuers on net zero targets, refining its measurement capabilities to go beyond Scope 1 and 2 emissions to include Scope 3, developing new climate and net zero-aligned strategies, and partnering with the Grantham Foundation on climate solutions.

“There are stark differences between how the world will be impacted by warming of 1.5 degrees Celsius and warming of 2 degrees Celsius, or more, which we believe would pose challenges to our ability to earn returns for our clients. Therefore, we think supporting the goal of net zero emissions by 2050 or sooner to limit warming to 1.5 degrees Celsius is critical to our future investment success. Setting initial net zero targets is an important step in our efforts to aid the fight against climate change and demonstrates our commitment to leading on this issue within the investment industry,” said Deborah Ng, Head of ESG and Sustainability.