Sustainability Consulting

JAB, an investment partnership focused on the consumer goods and services sector, faced the challenge of aligning its investment strategy with ambitious climate goals. Recognizing the intrinsic link between long-term financial performance and environmental sustainability, JAB aimed to set a science-based target to reduce greenhouse gas emissions across its portfolio. In 2021, JAB became one of the first investment firms to engage with the Science Based Targets initiative (SBTi), committing to a 46% reduction in absolute Scope 1 and 2 GHG emissions by 2030 from a 2020 baseline. Additionally, JAB set a target for 80% of its portfolio investments to have SBTi-validated targets by 2025, increasing to 95% by 2030.

To achieve these ambitious targets, JAB implemented a structured approach that included conducting in-depth research into existing frameworks and actions taken by other stakeholders. This research informed their decision to adopt a more aggressive target of 80% coverage for their Scope 3 portfolio, which encompasses emissions from their investments. JAB's strategy involved actively engaging with portfolio companies to integrate ESG priorities into their operations, facilitated through quarterly ESG Collaboration Forums. These forums allowed sustainability experts and C-suite leaders from JAB's portfolio to share best practices and address challenges in executing their ESG agendas.

Despite the progress, JAB encountered challenges in decarbonization, particularly in helping investors understand the connection between robust ESG strategies and long-term performance. The firm recognized the need for increased transparency and standardized frameworks to navigate the complexities of ESG implementation across its diverse portfolio. By leveraging the SBTi's framework, JAB aimed to standardize its approach to climate action, ensuring that all portfolio companies, regardless of their current stage in the decarbonization journey, received the necessary support to achieve their sustainability goals. Through these efforts, JAB not only aimed to enhance its investment performance but also to inspire broader industry action towards ambitious climate targets.