We have set interim targets for emissions reductions that apply to a portion (approximately 14% as of 12/31/21) of our assets under management (our “Net Zero Target Assets”)1. While we believe attention to climate risk is relevant to long-term value, our targets will only be achieved if net zero is important to our clients and they instruct us to achieve that objective in the portfolios that we manage for them. In this regard, it should be noted that we will not depart from client mandates to achieve the objective of net zero, we will not force any client to embrace net zero, and we will not sell companies in any index because those companies do not achieve net zero targets or objectives. As an index manager, we are long-term shareholders on behalf of our clients and we are focused on delivering the index exposure to those clients.
We have set the following three targets that apply only to our Net Zero Target Assets :