IFM Investors sets 2030 emissions target

The $174 billion manager owned by industry funds will reduce the carbon footprint of its infrastructure assets by 40% by 2030, as it heads down the path to net zero by 2050.

IFM Investors has set its interim emissions reduction target for the infrastructure asset class at 1.16 million metric tons of CO2e, a 40% reduction on 2019 levels.

FM also announced it would restrict investments in any assets that derive material amounts (more than 20%) of revenue from thermal coal, while targeting zero coal exposure for its existing infrastructure portfolio by 2030.

Last year, IFM committed to reducing greenhouse gas emissions across its asset classes, targeting net zero by 2050.

The announcement in relation to its infrastructure assets considers scope one and two emissions, but not scope three emissions. However, IFM chief executive David Neal confirmed it was considering scope three emissions in its investment decisions.

"We are absolutely focussed on scope one and two for this time, that's what we committed to when we made our 2050 announcement," he said.

"Scope three is critical for us as an investor, scope three is a huge influence over the transition risk in our portfolios.... We think it's just hard for us to include within the target because we don't have control of it, we don't have influence over it, and we would prefer to have targets that we can commit to achieving ourselves."

Explaining why IFM set an interim target for infrastructure assets first, Neal said it was because infrastructure is IFM's largest asset class.

"As essential services those assets have a large footprint. That's where we could control and influence and effect significant change," he said.

Neal clarified that IFM is acting to reduce emissions across all its portfolios in line with its 2050 commitment and further announcements regarding targets in other asset classes will be made soon.

IFM Investors global head of infrastructure Kyle Mangini added: "We are making infrastructure investments today that our investors expect to hold for the long term. If these investments are to generate strong, long-term sustainable returns, we need to ensure that they continue to play an important role in society in a net zero economy."

Last year, IFM Investors is reporting a nearly 8% reduction in carbon emissions across its Australian infrastructure portfolio in the 2018/2019 financial year.

FM Investors' infrastructure assets in Australia are Ausgrid, Melbourne Airport, Brisbane Airport, NSW Ports (Botany and Kembla), the Port of Brisbane, Southern Cross Station in Melbourne and Northern Territory Airports (Darwin Airport and other NT airports).

IFM Investors reported total scope 1 emissions of 59,254 tonnes of CO2 and 948,672 tonnes of scope 2 emissions, and a total of 273,514 tonnes CO2 of portfolio financed emissions.

Read more: IFM InvestorsDavid NealKyle Mangini