Nature

Climate action based in science

Given the urgency of the climate crisis, it is crucial that decisions made at CapMan as well as in the assets and portfolio companies that we manage are made in a climate-conscious manner. Our decisions are informed by the latest and most credible methodologies and scientific research. We assess the carbon footprint of our activities and have set greenhouse gas (GHG) emission reduction targets in line with the Science Based Targets initiative (SBTi). We have validated mid-term science-based targets to reduce Scope 1 and 2 GHG emissions by 51% by 2032. We follow the SBTi guidelines for private asset companies and have set Scope 3 GHG emission reduction targets at asset level, including reduction in GHG emissions intensity for real estate and share of portfolio companies that have set science-based targets. We are committed to reaching net-zero emissions by 2040 for all investments and in-use operational net-zero emissions by 2035 in the real estate portfolio. We also assist our investments in measuring, setting and validating individual emission reduction targets in line with SBTi guidelines, while implementing mitigation and adaptation measures. Furthermore, we annually track and disclose the Scope 1–3 GHG emissions of our investments.

Of our investments, real estate and infrastructure assets are particularly vulnerable to the physical consequences of climate change. We are working to better understand the risks of climate change on our assets under different scenarios by conducting physical climate risk assessments and adaptation plans. The relevant physical risks for our real estate assets (such as floods and heat waves) have already been identified with the appropriate adaptation solutions, and the same exercise will be conducted for our infrastructure in 2024. With global transition to a low-carbon economy, we will also define the risks related to policy, technology, market changes, as well as the risks from changing consumer, employee, and stakeholder preferences under different scenarios.

We also believe in representing the real assets perspective in international standards setting. In 2024, we participated in two pilots by the SBTi. CapMan Real Estate piloted the SBTi Buildings Project, testing the science-based target-setting guidance and tool drafts, which later published the SBTi Buildings criteria. Later during the year, we participated in piloting the Draft Financial Institution Net-Zero (FINZ) Standard, that will establish a structured approach for setting net zero targets for financial institutions.