The French asset manager Comgest has selected the Net Zero Investment Framework (NZIF) to inform development of its climate targets, which comprise a series of short- and medium-term objectives covering all of the firm’s listed-equity assets under management (AUM). The firm, which became a signatory to the Net Zero Asset Managers initiative in 2022 and published its targets the following year, uses the NZIF’s six mandatory alignment criteria for companies operating in high-impact sectors to inform its portfolio coverage target (or asset alignment target) and to prioritize companies for engagement.[1]

By 2025, Comgest aims to engage with companies representing 70% of its financed emissions. By 2027, it aims to invest 50% of its listed-equity AUM in companies classified as either “aligning to a net zero pathway,” “aligned to a net zero pathway” or “achieving net zero,” up from a baseline of 35% in 2022.

That’s not to suggest those companies will necessarily glide to net zero. “While we are nearing our 2027 target, issuers’ journeys are not a straight line” says Marie Gauthier, ESG specialist at Comgest.

Comgest acknowledges that NZIF criteria pertaining to emissions performance remains challenging to analyze and therefore prioritizes assessing how companies meet the criteria to qualify as “committed to aligning,” and “aligning,” rather than “aligned” and “achieving net zero.”

“Our current focus lies on the “‘aligning”’ category, including assessing the robustness of companies’ targets and disclosures” says Gauthier. “They are indispensable steps all companies need to take to initiate their transition and contribute to global net-zero goals.”[2]