AB’s Net Zero Commitment


Approach to Net Zero

AB supports the Paris Agreement, and we’re committed to aligning our firm with a 1.5 degree Celsius 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 began formalizing our approach to responsible investing, including integrating climate-change considerations in some of our actively managed strategies. 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, in the best interest of our clients.

At AB, we believe that climate risk is an investment risk, and that it’s important 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 the tools available—like net zero—in managing climate change can help 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 establish targets to align a range of investments. This commitment 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. 



The goal of net zero is to manage climate risks and invest in climate opportunities. Climate risks increasingly have an impact on issuer strategy, actions, cash flows and valuation. As an asset manager, integrating these risks and opportunities can help our research and decision-making processes, especially when optimizing risk and return for our clients. 

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.

Two people reviewing a document on a park bench

When our investment analysts engage with issuers, they speak directly with management, board directors or other key officers, discussing the material ESG issues a company faces. Dialogues include discussions about how companies identify and disclose material ESG issues and how they’re integrating these considerations into their businesses. We engage for insight to understand how companies are identifying, assessing and managing climate change risks and opportunities that are material to their businesses. We engage for action to: advance issuers’ net zero commitments and progress; encourage them to report basic emissions metrics and targets; better understand the feasibility of their goals and assess the thoroughness of their transition plans; and escalate through collaborative engagement, policy advocacy, and proxy voting.

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


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.

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.


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 Sara Rosner 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.