UN-convened Net-Zero Asset Owner Alliance

The Alliance has established a framework for setting interim targets on various decarbonization initiatives to guide members in achieving net zero emissions. In accordance with the Alliance’s Target Setting Protocol, UTAM has established interim targets with respect to emissions, engagement and transition financing.

After announcing in 2020 a commitment to reduce the carbon footprint of the equity (and equity-like) securities component of the Endowment portfolio by more than 40%, UTAM met this reduction target almost a decade ahead of schedule.

We continue moving forward by setting ambitious new reduction targets and sustainability goals, informed by the Alliance’s Target Setting Protocol. Our carbon footprint target is now a further 50% reduction by 2030, measured against a 2019 baseline.

Since joining the Alliance, we’ve reassessed our footprint methodology to align with its Target Setting Protocol. Under the Protocol, public equity and publicly traded corporate bonds are expected to be included in carbon footprint calculations. Therefore, beginning with UTAM’s 2021 carbon footprint, we include publicly traded corporate bonds along with equities and equity-like securities.

Alliance members are expected to set targets on the Scope 1 and Scope 2 emissions. Historically, carbon footprints calculated by UTAM have included both Scope 1 and Scope 2 emissions.

The collection and reliability of Scope 3 data continues to be an issue due to data limitations, double-counting and the lack of a consistent measurement standard – and, at the present time, the Alliance does not require Scope 3 emissions to be included in carbon footprint calculations. Nonetheless, we began tracking Scope 3 emissions in 2022 and will be evaluating how the data may be used going forward and monitoring changes in Alliance requirements for these emissions.