Baseline date: 31 December 2019

Baseline performance: 76 tCO2e/$mn invested

Target year: 2030

Target(s): -60% CO2e/$mn invested by 2030

GHG scopes included: The reduction target is set for scope 1 & 2 emissions for listed equity and corporate bonds and real estate.

Asset classes in scope: For now, the portfolio reduction target covers the following asset classes: listed equity and corporate bonds and real estate.

Velliv continuously reviews relevant data and methodologies to incorporate more asset classes when possible.

Methodology/net zero scenarios: Use of data to estimate portfolio carbon emissions and targets is work in progress.

Data coverage per end year 2022:

• Listed equity 99%
• Listed corporate bonds 81%

We use the Net Zero Investment Framework as well as the International Energy Agency’s roadmap to net zero in 2050, the Net Zero Scenario to determine the net zero pathway of our portfolio. The Net Zero Scenario is consistent with a maximum 1.5 degree global warming above pre-industrial levels.

For real estate we use the CRREM model to determine the net zero pathway of our portfolio.

Emissions metric: Due to continuously growing AUM, Velliv has set carbon reduction targets on a relative emissions basis. As part of our annual reporting we will disclose both absolute and relative emissions of our portfolio and the progress made.

Quantitative target

Baseline date: 31 March 2023

Baseline performance: 5.5% of AUM     

Target year: 2030

Target: 20% of revenues from AUM are invested in assets contributing to the green transition.

Methodology: Velliv uses the methodology of the EU taxonomy do define green investments and climate solutions as taxonomy aligned where possible.

Baseline date: 31 December 2022

Baseline performance: 45% of assets meeting at least “aligning” criteria in baseline year.

Target year: 2030

Target: 69% of assets meeting at least “aligning” criteria in target year.

Asset classes in scope: The target covers listed equity and corporate bonds. Real estate is not included in this target since the real estate portfolio is already on path to a 1.5C scenario.

Data sources: To assess alignment for listed equity and corporate bonds we use ISS ESG Climate Scenario Alignment data (targets assessment) and ISS ESG Climate Net Zero data (alignment status).

Based on the two data sources, Velliv considers companies as ‘aligning’ when they have either (1) aligning status or (2) approved SBT or ambitious target, or both (1) and (2).

Approach: By 2025, 70% of the financed emissions in material sectors will be considered to be either “aligned” or “aligning” or subject to engagement. The threshold will increase to 90% of the financed emissions by 2030.