Investing with responsibility: KGAL focuses on climate projects

Investment management with purpose

KGAL is an independent investment company managing assets worth around €13 billion and an additional €2.7 billion under administration.

For more than 50 years, the company based in Grünwald near Munich has developed long-term real asset investments for institutional and private investors with a focus on real estate, sustainable infrastructure, and aviation.

Already in 2010, KGAL adopted a mission statement that anchored environmental protection as a strategic goal. In 2018, the company signed the UN Principles for Responsible Investment.

Growing responsibility

As an investment manager, KGAL has a particular leverage: its decisions impact not only its own operations but also billions in investments. This creates a responsibility that goes well beyond regulatory requirements. Investors, employees, and the public expect an active contribution to the Paris and EU climate targets. Transparency around the full corporate carbon footprint was the first step as the basis for an effective climate strategy.

Clarity through the corporate carbon footprint

Together with ClimatePartner, KGAL measured its corporate carbon footprint (CCF). This provided a precise data foundation that makes the company’s carbon emissions visible and highlights reduction potentials. It marked the starting point for a climate strategy that addresses both operational and investment-related emissions.

Climate projects as part of the strategy

As part of its climate action strategy, KGAL supports climate projects. The decisive factor here is proximity to its own business areas: energy, housing, and mobility. By backing initiatives such as clean drinking water in Madagascar and forest protection in Pará, Brazil, KGAL connects climate action with sustainable infrastructure and livable housing, embedding responsibility as a fundamental part of its investment philosophy.

12 percent fewer emissions in just one year

The results speak for themselves: between 2023 and 2024, KGAL reduced emissions from its own operations by 12%. This demonstrates that the strategy is working and that clear targets combined with decisive action lead to measurable outcomes. At the same time, KGAL is building structures that anchor climate action within the company for the long term – going beyond compliance, driven by its own commitment.

Looking ahead

The next steps are already defined: KGAL will increasingly focus on Scope 3 emissions, especially financed emissions – the emissions caused by its financing and investment activities, which account for a major part of the overall footprint. By 2045 at the latest, KGAL aims to achieve climate neutrality, demonstrating that responsible investment and effective climate action belong together.

KGAL on working with ClimatePartner

"ClimatePartner is a strong partner for us, bringing transparency and orientation to our CO₂ accounting with a clear methodology – a decisive basis for successfully implementing our ambitious climate strategy." 

— Hannes Tausend, Head of ESG, KGAL