Environmental

In late 2020, MAM set the foundations for our net zero journey by publicly announcing our net zero commitment. As an active manager and a fiduciary, we support the decarbonisation of our portfolio, to the extent possible and subject to client preferences, to mitigate and manage the risks of climate change and enhance the long-term value of the businesses we invest in on behalf of our clients. We are also engaging with a wide range of stakeholders to help refine our approach, share knowledge and collaborate on the challenges and opportunities presented by the transition to a low-carbon economy. 

We continue to support carbon-intensive industries, including those in the electricity, water, gas, agriculture, transport, mining, oil and waste sectors. These industries provide products and services that communities rely on. We also recognise that the impacts of a changing climate will not be evenly distributed, with lower-income communities and countries more at risk and with fewer resources to adapt. For these reasons, we believe long-term solutions lie in collaboration, rather than divestment.

Find out more about our methodologies, targets, and approach to net zero here.

The scale of the issue at hand requires collaboration and partnerships. No one can reach net zero alone – no company, no sector, no country. In partnership with our portfolio companies and properties, we are making progress with our decarbonisation goals. But we still have some way to go.”

Kristina Kloberdanz 
Chief Sustainability Officer, Macquarie Asset Management

Annual clean energy investment worldwide will need to almost triple from $US1.7 trillion in 2023 to $US4.6 trillion by 2030 to put the world on track for reaching net zero emissions by 20500.³ The world needs to scale up production of mature technologies like solar and wind as swiftly as possible to give communities sufficient access to clean electricity. Meanwhile, we must also support the commercialisation of emerging climate solutions and technologies that enable deeper decarbonisation.

In our private market businesses, we’re enabling clients and portfolio companies to scale their investment in renewable energy generation through our specialist developers. We’re also investing in the next phase of the energy transition, with portfolio companies developing grid-scale battery storage, biomethane projects and green hydrogen production. And in our public market businesses, we’re engaging with companies to understand and assess the commercial viability of their decarbonisation pathways and climate solutions. 

Learn more about our specialist green investments teams

See how we measure our impact in the latest Progress Report.

There’s a symbiotic relationship between mature and emerging clean energy technologies. We are working across the full technology spectrum to offer clients, portfolio companies and partners exposure to a diverse set of climate solutions which can help them achieve their sustainability goals.”

Mark Dooley
Head of MAM Green Investments, Macquarie Asset Management

The role of natural assets in reaching net zero is critical – encompassing issues around air and water quality, food and fibre production, conservation, biodiversity, and carbon sequestration. This relationship demands careful consideration around how we meet the growing needs of communities, while protecting our natural systems and biodiversity.

With more than 4.7 million hectares of farmland⁴, our Private Markets’ portfolio provides potential for large-scale, cost-effective, nature-based carbon sequestration. We already have a variety of carbon sequestration projects under operation and development, and as environmental markets mature, we expect the size of these carbon abatement opportunities to grow significantly. Within our public markets businesses, we are engaging with investee companies on a range of biodiversity considerations, including pollution, waste management and resource efficiency. 

Learn more about nature-based solutions and the evolution of agriculture

We are increasingly focused on the capacity of our landscapes to sustainably produce food and fibre, while making a meaningful contribution to the removal of carbon from the atmosphere through nature-based solutions.”

Elizabeth O’Leary 
Chair of Agriculture and Natural Assets, Macquarie Asset Management

The world is already seeing widespread climate disruption, affecting the lives of billions of people, and we can expect additional severe climate impacts.⁵ As the custodian of critical transport, utilities and communications infrastructure, adaptation to these risks is a high priority.

Across our private markets portfolio companies, we are investing in more resilient power supplies, utilising predictive weather and climate forecasting to anticipate extreme weather events, and working closely with customers and local communities to help ensure their health and safety. Within our public markets businesses, we are investing in companies that provide products and services needed to adapt to a warming climate.

Learn more about our approach to climate adaptation and resilience

Investment in adaptation and resilience happens through proactive risk management, planning and good communication. We are increasingly able to benefit from technology – such as sensors, drones and geospatial systems – to improve early detection of potential risks and take proactive measures to reduce downtime of critical assets.”

Leigh Harrison
Head of Real Assets, Macquarie Asset Management

The circular economy is a key component of a sustainable energy transition. It aims to reduce net waste through recycling waste into carbon-neutral energy or products, alongside material recovery, repurpose and reuse. This is an area of past and future investment opportunity for our clients.

Within our private markets businesses, many of our waste portfolio companies around the world are collecting waste that would have otherwise gone to landfill and processing it towards reusable products. Meanwhile, other portfolio companies are encouraging more sustainable product use and reuse in their supply chains, such as in the telecommunications and real estate sectors. 

Explore our work in action: Beauparc (UK).

Beyond reducing carbon emissions, we are seeing waste-to-resource businesses create secondary product streams along their value chain through processes that recycle and reuse waste. The circular economy has not only reoriented their business strategies, but also redefined their approach to value creation.”

Hani Zogheib
Head of Diversified Infrastructure, EMEA, Macquarie Asset Management