Metrics and targets
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
In 2022, HOOPP committed to achieving a net-zero portfolio by 2050. This net-zero goal builds on the target set for our Real Estate portfolio in 2021, which aims to reduce carbon emissions in our direct investments by 50% on an absolute basis. Additionally,
for our Real Estate portfolio, we measure our buildings’ climate resiliency and renewable energy usage as part of Real Estate Sustainability Pillar Scorecard. The most recent metrics can be found in our Real Estate Sustainability Report.
We continue to measure and monitor the portfolio carbon footprint and the percentage of the portfolio covered by the footprint measure, aiming to increase this coverage over time. Portfolio carbon footprint metrics are not a complete measure of climate
risk, and so we also continue to review alternative measures of climate risk.
Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse (GHG) emissions, and the related risks.
Our 2022 footprint includes four asset classes: public equities, real estate, private equity, and infrastructure. This is an expansion in coverage from the 2021 footprint metric, which included public equity and real estate.
|
2021 |
2022 |
Carbon footprint (tCO2e/million dollars invested) |
40.4 |
39.2 |
We use the enterprise value method recommended by the Partnership for Carbon Accounting Financials (see formula below). Our footprint metric includes the Scope 1 and Scope 2 emissions of the assets in the in-scope portfolio, with limited Scope 3 included
for some real estate properties. Shares in public companies, internally and externally managed private assets, futures and total return swaps on equity indices are included. Equity options are not included. We have included long positions only; short
positions are not included and have not been netted. Public portfolio values are as of Dec. 31, 2022 and private portfolio values are as of Dec. 31, 2021 due to timing on data availability.
Emissions data is a combination of reported and estimated data. The data quality score for the 2022 footprint is 2.7 based on the PCAF data quality scoring methodology, where 1 is the highest quality, most certain level and 5 is the lowest quality, least
certain level.
A portfolio carbon footprint is a backward-looking measure and, as such, does not factor in forward-looking plans to reduce emissions. Data can be dated and unavailable to investors, requiring estimation of emissions or exclusion from the portfolio footprint
measure. A portfolio carbon footprint is not a comprehensive measure of climate risk or opportunity and can fluctuate due to changes in market pricing, rather than changes in carbon emissions or holding size.
Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.
In 2022, HOOPP set the goal to achieve a net-zero portfolio by 2050. We designed a set of interim targets that work in tandem and help us align our shorter- to mid-term actions with the long-term pathway to net zero. Our interim targets for 2025 and 2030
include percentage of portfolios covered by reported emissions data, capital made available for green investments, percentage of portfolios covered by credible transition plans, and portfolio emissions intensity in CO2e per $1M invested. Together,
these targets are designed to put us on the pathway to net zero in a manner that contributes to real world decarbonization. Please refer to Our climate strategy: good for the Plan and the planet for more information on our net-zero portfolio targets.
On an annual basis, climate-related objectives are included in the Investment Management divisional performance scorecard, which factor into compensation. Our Board reviews and approves the annual scorecard objectives.