Metrics joins the Net Zero Asset Managers Initiative
Metrics Credit Partners (Metrics), a leading Australian non-bank corporate lender, has joined the Net Zero Asset Managers (NZAM) initiative, marking its commitment to supporting the goal of net zero greenhouse gas emissions across its portfolio of loans and its own operations by 2050, if not sooner.
Metrics is an investor signatory of the initiative, which guides 220 groups managing US$57.4 trillion of investor funds in their efforts to limit warming to less than 1.5 degrees Celsius and support investment aligned with net zero emissions by 2050. In joining the NZAM, it has also become part of the Glasgow Financial Alliance for Net Zero which brings together the financial sector to accelerate the transition to a net-zero economy and the UN “Race to Zero” which aims to build business and civil society momentum towards addressing climate change.
Participation in the Net Zero Asset Managers initiative coincides with Metrics joining the Investor Group on Climate Change (IGCC), a collaboration of Australian and New Zealand investors focusing on the impact that climate change has on the financial value of investments.
Metrics joined IGCC in September and committed to the NZAM initiative to provide a plan for the firm’s activities and a measure of accountability for its investors, customers and employees.
As part of its commitment, Metrics is required to submit a plan to achieve net zero emissions and provide annual reporting on its progress toward that goal. Metrics is developing science-based targets for Scope 1, 2 and 3 greenhouse gas reductions and, as part of this, has engaged consultants to review emissions across its portfolio and its own operations.
Metrics Managing Partner Andrew Lockhart said investors and asset managers have a vital role to play in helping address the environmental impacts of the businesses they support.
“Metrics is determined to play a leading role in promoting and assisting with the transition to a low carbon economy. This presents an enormous opportunity and Metrics is committed to ensuring that we both lead by example and ensure our stakeholders have the means to participate in achieving a just and timely transition. Metrics is proud to join IGCC and commit to the Net Zero Asset Managers initiative to further this goal.”
Metrics provides private credit funding to Australian and New Zealand business and is a significant lender to the commercial property sector through a suite of listed and unlisted funds. Since being founded in 2011 it has provided more than $15 billion to borrowers across multiple industries and sectors. As one of the largest non-bank providers of private credit in Australia, Metrics actively promotes the development of the local capital markets and long-term, sustainable business practices to address the challenges of climate change.
Metrics has already taken several steps to enhance its capabilities for sustainable investing and achieving ESG outcomes, including:
- The appointment of experienced executive Alison Chan as Investment Director – Sustainable Finance;
- Updating its ESG policy;
- Becoming a Founding Member of the Australian Sustainable Finance Institute which is an unprecedented collaboration formed to help shape an Australian economy that prioritises human well-being, social equity and environmental protection, while
underpinning financial system resilience and stability.
- Becoming the first Australian non-bank asset manager to join the Climate Bonds
Initiative which aims to help redirect capital towards investment that can help achieve
net zero emissions.
By joining IGCC, Metrics becomes part of a global group of investors collaborating to pull together and elevate the best investor guidance on tackling the climate crisis and advocate collectively for public policy to accelerate the net-zero transition – called the Investor Agenda.
At the COP26 meeting in Glasgow this week the Investor Agenda presented a statement, signed by 733 investors with over US$52 trillion in assets under management – around 50 per cent of the global total, urging governments to raise their climate ambition to limit global warming to no more than 1.5 degrees, implement meaningful emissions reduction policies, mandate climate-related financial reporting in line with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), and deliver COVID-19 economic recovery plans that support a just transition to net-zero emissions by 2050 or sooner.
The 2021 Global Investor Statement reads: “…we believe that those who set ambitious targets in line with achieving net-zero emissions and implement consistent national climate policies in the short- to medium-term, will become increasingly attractive investment destinations.”
“Full implementation of the Paris Agreement will create significant investment opportunities in clean technologies, green infrastructure and other assets, products and services needed in this new economy.”
Andrew Lockhart, Managing Partner at Metrics Credit Partners, provided insights into the opportunity and outlook for Australian private debt in…