Best practice example: Investment Funds

Van Lanschot Kempen

“Kempen started measuring carbon intensity of our own funds a few years ago and since [2017] we for the first time published the numbers externally. We see a lot of value in having a harmonized carbon accounting methodology that can help us implement TCFD recommendations and make us and our clients more aware of climate related risks and opportunities in our investments,” says Narina Mnatsakanian, director Impact & Responsible Investment for Kempen.

“The table below shows our carbon footprint [in 2016]. This is an initial assessment, and the figures only represent a portion of our assets under management, partly due to lack of carbon data. In the coming years, we aim to increase the coverage of our assets under management.” (Van Lanschot Kempen 2017. Annual Report).

To estimate the financed carbon emissions, Kempen measures the portfolio’s absolute carbon footprint (in tons CO2) based on its shareholdings in the underlying companies. The shareholding in each company is taken as part of the enterprise value and multiplied by the carbon footprint of that company. In 2018, the total financed emissions of Kempen’s internal asset management portfolio reached 2.3 million tCO2e.  (Van Lanschot Kempen 2018. Annual Responsible Investment Report)