As an active manager, and a fiduciary, we're focused on decarbonising our existing portfolio not only to manage the transition risks of climate change, but also to seize the opportunities presented by the energy transition.
19 + years
of green energy experience
$A1.4b
invested or arranged financing in MAM green energy assets1
$A4.5bn
invested in ESG-labelled bonds by the MAM fixed income team2
For two decades Macquarie has worked in close partnership with stakeholders in the public and private sectors to support the energy transition and advance solutions to climate challenges.
Within MAM, as an active manager, and a fiduciary, we’re focused on decarbonising our existing portfolio not only to manage the physical and transition risks of climate change, but also to seize the opportunities presented by the energy transition. And, as an investor, we’re committed to finding and creating compelling climate solutions for our clients, portfolio companies and communities.
Learn more about Macquarie’s climate journey.
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
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- On our balance sheet or under Macquarie management for the year ended 31 March 2024. Refer to the FY2024 Basis of Preparation for ESG Reporting for the definition of ‘green energy assets’.
- As at 31 March 2024 on behalf of the funds and strategies it manages. The MAM Fixed Income team defines ‘ESG-labelled bonds’ as bonds that have been issued to address specific environmental or social factors, which have been grouped into four categories: green or climate bonds, social bonds, sustainability bonds and sustainability-linked bonds. These bonds have been labelled by the issuers in accordance with industry-recognised standards such as ICMA’s Green Bond Principles or the UNDP SDG Impact Standards for Bond Issuers and/or verified by an external ESG assurance provider.
- IEA, World Energy Investment 2023, May 2023.
- As at 31 March 2023.
- IPCC, 2022: Climate Change 2022: Impacts, Adaptation, and Vulnerability. Contribution of Working Group II to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change [H.-O. Pörtner, D.C. Roberts, M. Tignor, E.S. Poloczanska, K. Mintenbeck, A. Alegría, M. Craig, S. Langsdorf, S. Löschke, V. Möller, A. Okem, B. Rama (eds.)]. Cambridge University Press. Cambridge University Press, Cambridge, UK and New York, NY, USA, 3056 pp., doi:10.1017/9781009325844.
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Sustainability at Macquarie Asset Management