Sustainable Investment Forum Europe: Barnaby Wiener on Net Zero, Engagement and Climate Risk

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• As part of our commitment to the TCFD, we have produced our first annual report in line with the TCFD recommendations. Read full report.
• As a signatory of the Net Zero Asset Managers initiative, we commit the majority of our AUM to be managed in line with net zero carbon emissions by the 2030 interim target. Read more.

Sustainable Investment Forum – Europe 2022

Interview with: Barnaby Wiener – Equity Portfolio Manager, Head of Sustainability and Stewardship, MFS Investment Management

Q: In April, MFS released its first annual report in line with the TCFD recommendations. Can you tell us more about it?

Barnaby Wiener: Sure. Well, we've been producing an annual sustainability report for a while. But as you say, this is the first one we used in line with TCFD. TCFD is a relatively new framework that's been introduced to essentially create standardized approach to reporting what companies and other organizations are doing to evaluate their climate risk exposure and what they're doing to act on it. And it's something that we are asking all the companies we invest in to produce, so seemed only appropriate that MFS should produce our own sustainability report in line with TCFD. And essentially, it outlines how we are thinking about climate risk for us as a business and in particular for us as an investor of other people's money and what we're doing to mitigate that.

Q: What are MFS plans before 2030 to ensure it is aligning with the Paris Agreement goals of limiting warming to 1.5°c?

Barnaby Wiener: Sure. So firstly, with our own operations, we were carbon neutral last year, and we would be taking whatever steps we can to reduce our emissions in line with the goals of Paris by 2030. Now, of course, as an investment firm, our own emissions are very limited, and it's really what we're doing with our investment portfolios that's material.

Barnaby Wiener: And here, it's really, I'd say, two things. First is making sure that we're positioning our clients' portfolios appropriately so that we're not exposing them to undue risks and, if possible, exposing to opportunities on the climate front.

Barnaby Wiener: But the most important thing I think is how we're going to be acting as owners, because I think that's where we can have a real impact as a large asset manager. So we will be engaging proactively and systematically across all of our issues, really just encouraging them to do whatever they need to do to make sure that their business models are aligned. Because it's the companies we invest in, particularly the larger emitters, that are really going to make the difference. And so our objective is to have all of our issues aligned by 2030. Our target is to get to 90%, and we've made that explicit as part of our net zero asset manager initiative target, and that's what we're focusing on.

Q: Why are events such as the Sustainable Investment Forum Europe important for collaboration to drive the net zero transition?
Barnaby Wiener: Well, I think events like this always have a value because getting together with peers, hearing different perspectives, meeting people, that's part, that's the oil of progress to some extent. And I think it's particularly relevant for a topic like this because climate change is so all-encompassing, and the actions we need to take involve so many different actors with different agendas to different perspectives. And sometimes, if you sort of sit in your echo chamber or bubble wherever you are and you don't get out, you don't hear those different perspectives. So I think it's critical that whilst the hard work is what each organization and each individual is doing in the day-to-day operations, having moments like this to gather and listen and reflect, I think, are extremely important.

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