Science Based Targets

KIRKBI has committed to a carbon emission reduction target in line with the Paris Agreement’s most ambitious 1.5 °C trajectory.

This means that KIRKBI commits to reduce its absolute carbon emissions to ensure that we play our part in limiting the effects of climate change. The target has been approved by the Science Based Targets initiative (SBTi).

KIRKBI’s targets cover both emissions from own operations as well as holding and investment activities.

Reduce absolute scope 3 emissions from fuel and energy related activities, business travel, employee commuting, and assets leased to other parties by 55 % by 2032 from a 2019 base year.

Ensure that 45 % of listed equities, bonds, private equity and debt portfolios are setting SBTi validated targets by 20251)

Through several initiatives to reduce carbon emissions and improved data quality, KIRKBI is well on the way to deliver on scope 1 and 2 target and has reached scope 3 target well ahead of the plan.

New reduction targets for validation by the SBTi in 2025 will be submitted in line with the required recalculation of the holdings and investments target, or as per SBTi guidance.

28 % 28 % of emissions from the investments and holdings were covered by SBTi-verified reduction targets at the end of 2022. An additional 12 % of emissions come from companies that have committed to setting a science-based target over the next two years, which would bring us to 40 % coverage. As such solid progress is made towards the portfolio coverage target of 45 %. We will continue to engage with those companies without science-based targets.

1) Meaning that of the total emissions from our holding and investment activities (calculated as the sum of the scope 1 and 2 emissions times our ownership share of the individual holding or investment), 45 % should have set SBTi validated targets by 2025.

Sustainability

Case

In 2022, Nilfisk A/S became the first of the companies in KIRKBI’s Long-term Equity portfolio to have their carbon reduction target validated by the Science Based Targets initiative (SBTi). In addition, ISS A/S, Falck A/S, and Landis+Gyr have all committed to setting SBTi-approved targets. Having a science-based reduction target is a key sustainability topic of KIRKBI’s active ownership model.

Case

Funding climate and biodiversity efforts in Brazil

In 2021, KIRKBI established the philanthropic fund, Fundo Ambiental Sul Baiano (FASB) to restore and sustain the Atlantic Forest in Southern Bahia, Brazil. The fund was launched in collaboration with New Generation Plantations and Forum Florestal da Bahia.

The Atlantic Forest has a high biodiversity and endemism with more than 20,000 plant species. However, less than 8 % of the original forest remains, putting pressure on the ecosystem, locally and globally.

In addition to restoring and sustaining the forest, the fund activates and engages with local NGOs and communities. The aim is to foster an understanding of economic and socially sustainable agriculture and forestry. The collaboration creates a network where competences and knowledge are shared to create new and viable projects to accelerate the restoration.

The ambition is to restore 1,500 ha of forest and establish 1,500 ha of sustainable land-use by end2023. At the end of 2022, 23 local projects were activated and approx. 1,200 families had directly or indirectly benefitted from the progress.