Nordea Asset Management (NAM) has been recognized by the Principles for Responsible Investment (PRI) for its leadership in spearheading a collaborative engagement of approximately 20 investors focused on enhancing disclosures and reducing company methane emissions to near zero within the energy, utilities, and waste management sectors. NAM was awarded the coveted “Recognition for Action – Climate” award at the PRI Awards ceremony in Toronto, Canada, yesterday.
The PRI Awards celebrate asset managers, asset owners, and service providers who excel in responsible investment strategies and stewardship practices. The independent judging panel commended: “This targeted initiative has elevated methane as a concern and is consistent with science. Good results to date. Great collaborative outreach. Just a smart, well-designed and executed program that has tackled an important climate issue smartly.”
NAM’s initiative began in July 2022, when it launched the first phase of its collaboration with select partners and clients to engage with companies in the oil and gas industry on methane emissions disclosure and mitigation. A key focus of this effort is to encourage investee companies to join the Oil and Gas Methane Partnership 2.0 (OGMP 2.0), the global ‘gold standard’ framework for methane measurement, reporting, and target-setting under the United Nations Environment Programme’s International Methane Emissions Observatory.
“We are proud to be recognised by the PRI for our corporate engagement on methane. As a powerful greenhouse gas contributing to 30% of global warming today*, methane reduction offers one of the best near-term opportunities to mitigate climate change and can often be done at no net cost. As investors, we play an important role in driving corporate action on methane reduction, as part of delivering returns with responsibility,” says Renée Tengberg, ESG Director and Lead on Methane Engagement at NAM.
The engagement is ongoing and has grown from 15 companies in 2022 to 65 in 2024—14 have joined the OGMP 2.0. As an early signatory to Net Zero Asset Managers Initiative, NAM is committed to pushing for improved methane data, greater transparency and significant reductions in methane emissions across sectors.