Taking climate action
We believe that climate change is a financially material risk, and that full consideration of climate-related risks and opportunities is both part of our fiduciary duty and a requisite for creating value for clients. We have committed to net zero by 2050, and have established interim short-term and medium-term targets to support our decarbonisation journey.
How we bring theory into practice
Our journey
Carbon footprinted our Equity Funds for the first time
2016
Introduced an exclusion for fossil fuel exploration and production
2020
Carbon footprinted our Fixed Income Funds for the first time
2021
Launched three Green Impact Funds
2022
Introduce our new Climate change Strategy
2023
60%-80% of our Funds financed emissions to be covered by an SBT
2025
Fund emissions reduction of 50%-78% or alignment with a 1.5C scenario
2035
Net Zero across scope 1, 2 and 3
2050
How we do it
Our climate strategy
Progress towards our goals is driven by our Climate Change Strategy. It is based on four pillars where we believe there is both a need for action and where we can make a difference. The four pillars – Decarbonise, Accelerate, Collaborate and Embody – each address a different part of the low carbon transition, targeting the areas where investors have the biggest role to play.
Decarbonise our funds
- We aim to decarbonise our funds in line with the goals of the Paris Agreement. Each of our funds is covered by a 2025 and a 2035 climate target.
- We will integrate climate analysis into our investment process and conduct bespoke and targeted engagement to deliver against these targets.
Accelerate the transition
- We aim to increase the amount of capital being directed towards climate mitigation and adaptation solutions.
- We will grow our range of sustainable, thematic, and impact funds, and improve our data collection and monitoring of climate-related opportunity metrics.
Collaborate to drive change
- We aim to promote progressive climate action by collaborating with other investors.
- We will participate and lead collaborative investor initiatives to drive change at the corporate level and encourage policymakers to establish supportive regulatory environments.
Embody our standards
- We aim to hold ourselves to the same high standards we expect of investee companies.
- We will initiate and run internal initiatives to reduce our operational emissions, and foster partnerships with local charities to raise awareness and action.
Engaging on climate change
Our Climate Stewardship plan
As part of our Climate Strategy, we have developed a Climate Stewardship Plan, which contains the companies responsible for over 70% of EdenTree’s financed emissions. The Plan sets out 13 climate-related expectations and assesses the performance of the high-impact companies against them. Based on how a company performs, we identify areas for improvement and translate these into bespoke engagement objectives. We then enter into dialogue over a three-year period to drive meaningful change.
Case studies
Climate engagement in action
Scope 3 Emission Disclosure
Ashtead Group
Scope 3 Emission Disclosure
Ashtead Group
Issue
Ashtead is an international equipment rental company operating across the US, UK and Canada. It features in our Climate Stewardship Plan due to its material contribution to financed emissions across several EdenTree Funds. When first added in 2023, Ashtead was among the weaker performers, lacking concrete emissions reduction targets, a net zero goal and scope 3 emissions disclosure.
Action
We engaged with the company for the first time in 2023 and had follow-up meetings in both 2024 and late 2025 to encourage progress against our objectives. Across all meetings, we were clear about our expectations for the company and used them as a chance to discuss progress made over the preceding period.
Outcome
We were pleased that the company made progress against two of our engagement objectives in 2024. In particular, Ashtead set a net zero by 2050 target and disclosed its scope 3 emissions for the first time. This subsequently improved its performance against several areas within our Stewardship Plan.
In 2025, we asked Ashtead to set a scope 3 target and include scope 3 emissions within their net zero goal, however the company cited visibility and data challenges as key barriers. We intend to follow up with the company in 2026 to reiterate the value of a scope 3 decarbonisation target.
Science-Based Targets
Yara
Science-Based Targets
Yara
Issue
Yara International is a Norwegian chemical company which makes one of the largest material contributions to EdenTree’s financed emissions due to its carbon-intensive business model and associated transition risks. In our its Climate Stewardship Plan assessment, Yara showed several weaknesses in climate risk management, notably the absence of a robust transition plan and failure to set approved science-based targets (SBTs), despite committing to do so in 2021.
Action
We met with Yara throughout 2024 and 2025 to discuss progress on these issues. The company had removed its commitment to set a near-term SBT, marking a regression against one of our key engagement objectives. To escalate, we supported a shareholder resolution at Yara’s 2024 AGM, urging the company to commit to publishing science-based targets to reduce scope 3 emissions over the short, medium and long term. We also publicly pre-declared our voting intentions via the PRI’s Shareholder Resolution Database.
In 2025, failing to observe any further progress from the company, we signed an AGM statement coordinated by ShareAction, and an additional statement in late 2025 coordinated by the IIGCC, calling on Yara to set comprehensive scope 3 targets and develop a more comprehensive transition plan.
Outcome
The statement was read out at the AGM, and we are continuing to engage with Yara collaboratively as part of IIGCC and ShareAction investor engagement initiatives. In late 2025, the SBTi published guidance for the chemical sector, something Yara had previously cited as a key barrier. We intend to follow up with the company in 2026 and escalate further if needed to drive stronger climate action.
Fossil Fuel Phase-Out
Vattenfall
Fossil Fuel Phase-Out
Vattenfall
Issue
Vattenfall is a focus company within our Climate Stewardship Plan due to its material contribution to the financed emissions of our funds. As an electric utility, its decarbonisation trajectory is pivotal to meeting our portfolio-level climate objectives. Our core objectives for this engagement include the total phase-out of its fossil fuel-based generation assets and the concurrent expansion of its renewable energy generation assets.
Action
Following on from our last meeting with the company in November 2023, we re-engaged with Vattenfall in late 2025 to review progress against our engagement objectives. We discussed the timetable for exiting remaining fossil assets, how climate targets are embedded within strategy and capital allocation and the actions being taken to enable a resilient fossil-free system particularly through renewables growth.
Outcome
Vattenfall continues to demonstrate leading practice among companies within our Climate Stewardship Plan. It has now completed the phase-out of all coal assets and achieved full alignment of its targets with the Science Based Targets initiative, meeting both of our engagement objectives. The company remains committed to net zero by 2040, with remaining oil and gas assets expected to play an increasingly limited, peak-balancing role and to be phased out by that date.
Banks' Climate Commitments & Fossil Fuel Financing
ING Groep
Banks' Climate Commitments & Fossil Fuel Financing
ING Groep
Issue
In acknowledgement of the role lending and underwriting play in influencing real-world emissions we have increased our engagement with the banking sector on fossil fuel financing. This engagement stream is particularly important given widespread weakening in climate ambition across parts of the banking sector since 2025. In 2025, we joined the IIGCC focus group for ING Groep. The bank is one of the stronger performers in the European banking sector but still has improvements to make in order to align with the goals of the Paris Agreement.
Action
We met with ING to discuss its climate target framework, disclosure of financed and facilitated emissions and its process for assessing clients’ transition plans, including escalation where progress is insufficient.
Outcome
ING Groep recently received validation for its SBT, reinforcing its leadership position. It has also committed to publish and set reduction targets for facilitated emissions - a key engagement objective - improving transparency and accountability. We encouraged further strengthening of the bank’s client engagement processes, including clearer escalation tools and thresholds for continued financing. We will continue engagement in 2026 to monitor delivery and encourage enhanced ambition.
Our insights
Insights
Climate Stewardship Report 2024/25
We are delighted to share EdenTree’s third Climate Stewardship Report, a milestone that reflects our continued commitment to sustainable investing and our proactive approach to climate responsibility.
Climate Stewardship Report 2023/24
This report reflects the important role we have in helping to accelerate systemic change. Amid record-breaking heat, and diminishing political ambition, it was a year for climate-focused investors to stand firm.
Climate Stewardship Report 2022/23
We are delighted to launch EdenTree’s first Climate Stewardship Report. It highlights new ambitions, targets and actions all designed to escalate action on climate change as urgent.
EdenTree’s Climate Commitment: now is the time for like-minded investors to step up
In response to evolving policy and industry landscapes, EdenTree redeclares its support for net zero, and reaffirms the company’s commitment to the climate targets laid out in its Climate Change Strategy.