Reducing our carbon footprint

AMP Wealth Management’s Net Zero Commitment

The United Nations (supported by scientists) have outlined a way  that the worst of climate change can be prevented, which is through transitioning the entire economy to net zero emissions by 2050. At AMP Wealth Management New Zealand (AMP), we strive to be at the forefront of the efforts towards  addressing climate change, therefore AMP has committed to achieving net zero emissions across our entire investment portfolios by 2050 or sooner. Our commitment and measurement currently focusses on AMP-branded funds, however we look to expand this to all funds over time.

We have made this commitment to demonstrate our support for efforts to decarbonise the climate while balancing and addressing other risks and opportunities for our customers.

What does a commitment to net zero emissions mean for us?

It is an ongoing journey to achieve net zero emissions, and a rapidly evolving area. But we have clear focus on two core building blocks: aligning our investment priorities to meet this goal and ensuring that we have robust plans that are science based.

Sustainable investment priorities

As an investment manager, there are two aligning investment priorities we need to adopt to fulfil this commitment to reduce our carbon footprint:

1. Decarbonising our portfolios in a way that is consistent with achieving global net zero greenhouse gas emissions by 2050 or sooner.

2. Increasing the investment into the range of ‘climate solutions’ needed to meet that goal.

Robust plans and targets

We are working towards this goal as part of a structured plan, which is regularly reviewed to ensure that it adapts as required in this fast-moving area. The core of this plan is:

  • Setting credible emissions reductions targets for our portfolios, including interim targets, which will be aligned to science-based targets (see below); and
  • Ensuring our investment decision-making aligns with these through measurement and transparent reporting of our progress.

We were the first KiwiSaver provider to commit to setting targets in line with the Science Based Targets Initiative, a partnership between the UN Global Compact, World Resources Institute and the Worldwide Fund for Nature that helps large organisations meet their climate change targets with genuine scientific principles, rather than ‘window dressing’ changes.  The next stage of this commitment is to obtain certification of these targets by the SBTi.

Progress to date

Since July 2021, we achieved an emissions reduction across our AMP-branded portfolios of 63% (as at 31 March 2023). To view our progress to date in more detail, look at our quarterly sustainable investing report available on our website. Divestment from fossil fuels was a principal driver of this initial reduction and is a first step to show our support for a decarbonised future, with other exciting steps to come.

Our progress to Net Zero  >

This relates to AMP-managed funds.
Note: Changes in emissions can occur from changes in investee company emissions, selling securities, market value changes & changes in investee companies’ carbon accounting practices. The initial drop from Jul-21 to Q3-21 was due to implementing our Sustainable Investment Philosophy.

Disclaimer: The tCO2e emissions data used for the calculations in the above charts are sourced from our sustainable data provider, Sustainalytics. This data is subject to some limitations as can be seen here. These pathways have been calculated using AMP’s methodologies as at 28.10.2022. Given the rapid development of methodologies & standards in calculating tCO2e emissions, we will continue to develop our approach as the relevant resources are set out. Due to the limitations with tCO2 data, this information is provided on an indicative basis only & no undue reliance should be placed on this.