German investment manager KGAL has committed to becoming a climate-neutral company by the beginning of 2021 by offsetting all greenhouse gas emissions connected to its operations.
Emissions calculated per employee will be reduced by 5% annually during the next 10 years. It has also pledged to have a net zero emission investment portfolio by 2050. The targets are set out in the company’s newly announced climate strategy.
KGAL CEO Gert Waltenbauer said: 'Living up to our mission statement means offering sustainable products for our investors, but also becoming a sustainable asset manager that contributes to a sustainable society.'
KGAL already considers climate-related factors on all levels of its business operations. In 2019, it was able to reduce its own emissions of around 1,700 tonnes of CO2 by 13% on a year-on-year basis, This was achieved primarily by minimising air travel and providing extensive opportunities for mobile working.
At product level, KGAL adheres to industry standards including GRESB, and – if formal standards do not yet exist – works with expert partners to develop bespoke assessment methods. The investment portfolio managed by KGAL of more than EUR20bn encompasses real estate, aviation and renewable energies.
Added Waltenbauer: 'KGAL has had a longstanding commitment to sustainability. We are proud of our progress in limiting our carbon footprint but realise we must do more.'
KGAL said its strategy is in line with both the Paris Climate Agreement and official European, as well as German, long-term climate goals which are aimed at limiting the increase in the global average temperature to below 2°C and to deliver a carbon-neutral economy by 2050.
