Abrdn names new Chief Sustainability Officer amid governance restructuring

UK asset manager Abrdn has named Dan Grandage as its new Chief Sustainability Officer. Company veteran Amanda Young exited the firm earlier this month amid record outflows and a governance restructuring.

Announced by Financial News, Young’s exit comes at a time of “significant strategic repositioning” for the FTSE 250 firm, which will also see its CEO Stephen Bird step down. 

Young spent more than a decade at Abrdn, having joined as Head of Responsible Investment in 2013 before being appointed Chief Sustainability Officer in 2022. She is yet to comment on her move.

Grandage also joined Abrdn in 2013 as Head of Sustainability, before leading real estate ESG activities and finally being named Head of Sustainable Investment at the same time as Young became CSO, in 2022. 

Head of Sustainability Insights and Climate Strategy Eva Cairns, who was also part of the sustainability group formed in 2022, left in April, while Mike Everett, Head of Active Ownership, has now retired.

Abrdn posted net outflows of almost £14 billion in 2023 amid what Bird called “structural and macroeconomic challenges”. The firm has announced a “transformation programme” aimed at cutting at least £150 million in annual costs by 2025, which includes slashing about 500 jobs.

Abrdn climate commitments

Abrdn is targeting a 50% reduction in the carbon intensity of its portfolios by 2030 from a 2019 baseline, and a 50% absolute reduction in operational emissions by 2025, from a 2018 baseline. However, the firm does not disclose Scope 3 emissions from its investments, and has not committed to setting science-based targets.

Portfolio carbon intensity, which has reduced by 41% as of 2023, does not include financed emissions associated with the assets on Abrdn’s balance sheet. Operational emissions have been reduced by 69%.

The company said in its latest sustainability report that it planned to publish its first climate transition plan in 2024, though the restructuring of its general and sustainability governance may affect this timeline.