2022 Global TCFD Report

TCFD report

Our fourth annual Task Force on Climate-Related Financial Disclosures (TCFD) Report seeks to build on our past experience and provide a comparable, investor-relevant disclosure on our activities and capabilities in climate-aware investing.

We’ve updated to the third vintage of climate scenarios developed by the Network for Greening the Financial System (NGFS) as the basis for our climate scenario analysis. This is comparable with the scenarios we used in our 2021 report but provides greater granularity.

For the second year, we’ve conducted additional analysis using the Inevitable Policy Response’s (IPR) Forecast Policy Scenario. This has been commissioned by the UN Principles for Responsible Investment. It offers a high-confidence model of policy responses to delayed climate action for an alternative look at the possible impact on the portfolios we manage for clients.

Within the 12% of our net zero-pledged assets under management (AUM), we’ve engaged with 59% of issuers that comprise 70% of our financed emissions in material sectors for those strategies.

We continue to expand our climate-aware investment capabilities, with the launch of the following:

  • A new mixed-asset strategy aimed at supporting the transition to a low carbon economy over the medium to long term.
  • A passive strategy to capitalise on the hydrogen market by focusing on a broad exposure to innovative technologies seeking low-carbon hydrogen solutions.
  • Invesco Real Estate is targeting completion of its first carbon neutral re-development in its global portfolio.
  • Climate-aware Capital Market Assumptions intended to guide strategic asset while recognizing the impact physical and transition climate risks could have on assets during a 10-year period.
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Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information

  • This is marketing material and not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

    Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.