AB’s Net Zero Commitment

 
 

1.5 degree Pathway by 2050

AB supports the Paris Agreement, and we’re committed to aligning our firm with a 1.5 degree pathway by 2050 while acting in the best interest of our clients. When we first became a signatory to the Principles for Responsible Investment in 2011, we formalized our approach to responsible investing, including integrating climate-change considerations. For over a decade, AB has engaged with issuers on climate-change risks and opportunities while collaborating with clients, data providers, regulators, industry bodies and other stakeholders to push for progress on climate issues.

At AB, we believe that climate risk is an investment risk, and that it’s essential to consider the material physical and transition risks and opportunities of issuers we invest in. Accurately forecasting cash flows and valuations, incorporating climate-risk considerations when optimizing risk and return, and using all the tools available—like net zero—in managing climate change ensures that our clients benefit from the most current climate risk management techniques. 

Consistent with our broader approach to responsibility, our net zero commitment encompasses our operations, and we are working to align a range of actively managed, long-only equity and corporate fixed-income investments. It is supported by our strategic partnerships and engagement within the global investment community. Net zero is a journey that’s well under way at AB—we’re excited for the next stage of that journey, as we translate our strategy into a structured approach to fulfil our commitment.

 
Three images of AB offices

Our Operations

At AB, we ask the same things of ourselves that we ask of the companies we invest in. We’ve tracked our own corporate emissions since at least 2012, and our climate beliefs have factored into our decisions to relocate to more energy-efficient buildings in Nashville, New York and London.

 

When it comes to our own emissions, we’ll follow the principles of avoid, reduce, replace and offset: We’re working to place 85% of our employees in greener workspaces by 2025, helping avoid emissions from less efficient buildings. We will also consider the use of renewable energy to cover our remaining operational energy needs.

 

We can further reduce our footprint by implementing composting and recycling programs in our offices and by inviting employees to participate in sustainability initiatives through our Employee Wellness Group. Only when emissions can’t be avoided, reduced or replaced will we consider offsets from reputable, quality-assured sources. 

 

Our Investments

The goal of net zero is to achieve real-world decarbonization. AB’s net zero approach for our investments focuses on:

Engagement

Active engagement is integral to our investment process. By meeting with companies and pushing for meaningful progress, we can proactively manage risks and opportunities arising from climate change, and help tackle global emissions.

Investment strategies committed to net zero will ramp up their already extensive engagement with issuers for insight and action, catalyzing emissions reductions by encouraging them to commit to climate action, report greenhouse gas emissions, set emissions-reduction goals and make their own net zero commitments in alignment with 1.5 degrees Celsius.

In fact, we’ve already targeted these actions over the last two years via the climate engagements in our annual thematic ESG Engagement Campaigns: 

 
Two people reviewing a document on a park bench

Research & Monitoring

At AB utilizing a unique combination of expertise across asset classes, and a more systematic use of climate data and monitoring will help us deliver deep research insights and distinctive net zero solutions.

Investment strategies committed to net zero will continue to embed climate data in their financial analysis, monitoring portfolio dimensions including the carbon emissions, carbon intensity, temperature alignment and climate value at risk of the committed portfolios.

  • Carbon Handprints: A New Approach to Climate-Focused Equity Investing
    Learn More
  • Understanding Your Bond Portfolio’s Carbon Footprint
    Learn More
Forearm of a person pointing to a computer screen

Climate Finance

Climate change presents both risks and opportunities. By identifying companies with green revenues, and building upon our $6 billion allocation to green bonds and other ESG-related securities, we can help fund climate solutions.

  • How Green Bonds Will Fund a Green Future
    Learn More
  • All Things Considered: A Framework for Assessing ESG-Labeled Bonds
    Learn More
Top of a windmill surrounded by clouds
 

Our Partnerships and Policy Advocacy

We recognize that climate change is a global challenge that demands a global response. Our deep commitment to combating climate change is evidenced by our history of active involvement in climate-related organizations and initiatives, including our climate policy work and innovative partnership with the Columbia Climate School. Through the Columbia partnership, we aim to shape the next generation of professionals who are striving to address the impact of climate change and develop new solutions.

We also maintain partnerships with other leading climate organizations, including the Asia Investor Group on Climate Change (AIGCC), CDP Worldwide, Climate Action 100+, the Climate Bonds Initiative, Ceres, the Institutional Investors Group on Climate Change (IIGCC) and the Net Zero Asset Managers Initiative.

AB’s journey to net zero has been rooted in collaboration and engagement on issues and policy related to climate change and investing. We have engaged in strategic planning and research, and we have spearheaded educational initiatives with the wider industry. Our extensive work with experts from across the climate finance spectrum has helped inform our thoughtful and deliberate approach to deliver our net zero goals.

 

Our Portfolios with Purpose

AB manages $524 billion in ESG-integrated assets and $31 billion in Portfolios with Purpose—strategies that go beyond ESG and climate-change integration and engagement, enabling clients to invest with purpose.

Growing our Portfolios with Purpose platform is a key part of our approach to net zero. AB has seven climate-conscious investment solutions, across its Responsible + and Sustainable product range, and we expect our range of climate-conscious solutions to expand over time.

 
 
Front cover of the Climate Change Statement & TCFD Report
 

AB’s Climate Change Statement and TCFD Report

Our robust Climate Change Statement and TCFD Report outlines our climate beliefs and goals, and how we support our net-zero commitment through governance practices, strategy, risk management, metrics and targets.

View Report
 
More Reports
 
 

ESG in Action

Investment Insights
The extraordinary beauty of planet earth is captured in the ultramarine and turquoise colors of an Icelendic glacier
Delivering a Net-Zero World—on Time
March 23, 2021 / 5 min read
by David Tsoupros Companies globally are racing to reduce their carbon emissions. But what does it really take to achieve ambitious green targets?
Investment Insights
A wind turbine, viewed from above, casts a shadow on the ocean.
Key Signs on the Road to Net Zero
December 02, 2021 / 8 min read
by Sara Rosner, Arthur Lerner-Lam Our recent conversations with climate experts, asset owners and other stakeholders on net zero surfaced issues central to developing solutions, including sharpening investors' skills, strengthening engagement, and striving for better and more accessible data.
ESG in Action
Forward view from the seat of a red kayak navigating an arctic sea full of floating chunks of ice.
Our Net-Zero Journey: Creating a Credible Commitment
December 02, 2021 / 11 min read
by Michelle Dunstan Climate promises are not the same thing as climate action. Here’s what we’re doing at AllianceBernstein to ensure that our efforts to reduce carbon emissions will achieve results.
 
 
“

AB has been intentional in its approach to responsible investing and in helping achieve a more sustainable future. Our net zero strategy emphasizes our commitment to ensuring that our people and portfolios work together to achieve critical climate goals.

Seth Bernstein—President and CEO

Subscribe

CONTEXT: The AB Blog on Investing

Thank you for subscribing!

Your subscription is confirmed.

Error!

Please try again.