World supervisor AIM units its sights on tackling the world’s issues by mobilising mainstream capital for impression.

Affirmative Funding Administration (AIM) is a devoted impression fixed-income specialist.

The imaginative and prescient is to mobilise capital to handle the most important challenges going through the world. The corporate focuses on managing portfolios that generate mainstream returns alongside environmental and social impression.

Primarily based primarily in London, with colleagues in Australia and Japan, AIM manages over $1.2bn in property for purchasers world wide.

AIM promotes transparency, measurement and reporting of impression, which incorporates ongoing monitoring of using proceeds and reporting, making certain that traders have full consciousness of how their capital is being invested. This culminates in detailed annual Impression Reviews for all funds and portfolios.

AIM’s enterprise is aligned to how the corporate itself invests. Its company sustainability construction is supported by 4 key pillars: individuals, local weather, purchasers, and neighborhood. This reaffirms commitments such because the alignment of the enterprise, portfolios and operations with the Paris Targets to restrict international warming to 1.5°C — together with net-zero GHG emissions by 2050. AIM’s annual company sustainability report clearly articulates the agency’s targets and progress.

AIM applies a three-step funding course of: verification, portfolio administration, and measurement and reporting.

The SPECTRUM Course of

SUSTAINABLE — Aligned with SDGs and the Paris Settlement on Local weather Change.
POSITIVE EXTERNALITIES — Constructive environmental and/or social externality related to issuance.
ETHICS and ISSUER CONDUCT — Issuers will need to have acceptable governance, coverage, and operational conduct.
CREDIT — Issuers have to be financially credit-worthy.
TRANSPARENT — Clear and clear funding insurance policies and processes on reporting and disclosure.
RESPONSIBLE ISSUER — Issuers will need to have integrity and excessive ESG requirements, in addition to a transparent dedication to a sustainable mannequin.
USE OF PROCEEDS — Capacity to find out use of proceeds within the issuer framework to guarantee AIM standards are met.
MEASURABLE IMPACT — All securities should provide mainstream market yields and supply reporting on the fabric and measurable environmental and social impacts.

Verification encompasses sustainability and credit score assessments, and is a vital first step in defining the investable universe. AIM’s verification course of, termed SPECTRUM, combines optimistic choice for impression, and environmental, social and governance threat evaluation throughout a variety of standards at issuer and issuance ranges. The result’s an accredited SPECTRUM universe of labelled and unlabelled inexperienced, social, and sustainability bonds. Each bond has a measurable environmental and/or social impression.

The portfolio administration crew solely manages portfolios for risk-adjusted returns towards mainstream benchmarks.

The ultimate step within the AIM funding course of is the evidencing of monetary returns and impression. A significant part of the agency’s philosophy is transparency for traders. Purchasers can yearly monitor the impression of their investments through reviews that element portfolio-weighted use of proceeds allocation throughout sectors and geographies. There may be additionally an unbiased evaluation of greenhouse gasoline (GHG) footprints (Scope 1, 2 and three), financial savings, and alignment with the UN’s Sustainable Growth Objectives (SDGs).

In 2020, AIM’s international portfolios funded greater than 2,551 initiatives in 165 international locations (that’s 75 p.c of countries). Some 189,219 tonnes of GHG emissions have been prevented from escaping into the ambiance annually, a saving of 64 p.c.

By gathering impression information in-house and interesting with issuers, AIM constantly achieves protection charges of over 90 p.c for all portfolios. Over 2021 AIM carried out 170 engagements with issuers. Consistent with its philosophy, AIM is clear on methodology, looking for standardisation of impression reporting.

AIM additionally produces quarterly reviews, which embody instance profiles on held issuers and issuance.

Calculation methodologies are disclosed within the appendix of reviews, and AIM has labored on the Carbon Yield Methodology in 2016, partnering with ISS-ESG and Lion’s Head World with funding from the Rockefeller Basis.

AIM continues to innovate to ship insights and significant reporting. This 12 months, it can report project-level net-zero alignment for the primary time, alongside emissions evaluation. The sustainability crew engages with issuers and has been conducting a thematic engagement on issuers’ internet zero commitments throughout sectors. The end result of this evaluation shall be featured in AIM’s impression reporting.

AIM’s European funds are Article 9 underneath the EU Sustainable Finance Disclosure Regulation (SFDR), the best attainable sustainability categorisation. Though not required till 2023, AIM is incorporating some SFDR metrics into this 12 months’s Impression Report, reporting on the adversarial impacts of portfolios alongside the optimistic and social impression achieved.