Terra Alpha Investments is the first US-based financial institution to receive approval by the Science Based Targets initiative for its Paris-aligned emissions reduction targets.
Since our founding in 2014, Terra Alpha Investments has placed climate change at the core of all of our work (our portfolio, corporate engagement, and thought leadership). We have advocated for companies to set science-based targets since 2018. We were amongst the first signatories of the Net Zero Asset Managers initiative. Today, we are proud to share that we are the first US financial institution (and one of only 15 financial institutions globally) with approved near-term targets for GHG emissions, consistent with levels required to meet the goals of the Paris Agreement.
Following our Commitment to a Net Zero Emissions Portfolio, in September 2021 Terra Alpha Investments announced an additional commitment to the Science Based Targets initiative (SBTi) to submit our portfolio emissions targets (scope 3) alongside newly-developed operational emissions (scopes 1 and 2) targets for approval from the SBTi.
By receiving approval from SBTi, we received verification of the following targets:
- Operational emissions (scopes 1 and 2): Terra Alpha Investments has committed to reduce absolute scope 1 and 2 GHG emissions by 46% by 2030 from a 2019 base year.
- Portfolio emissions (scope 3): Terra Alpha Investments has committed to 75% of listed equity portfolios by invested value setting SBTi-validated targets by 2025, and 95% of listed equity portfolios by invested value setting SBTi-validated targets by 2030.
The window to limit the worst impacts of climate change is closing (Source: IPCC Report). While we are pleased to receive the approval of our targets from the SBTi, we know that the journey of transitioning to a truly sustainable economy is just beginning.