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, this 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.

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's 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 Agreement and EU climate targets. Transparency on their corporate carbon footprint (CCF) 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. 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 in close 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% fewer emissions in just one year

The results speak for themselves: between 2023 and 2024, KGAL reduced emissions from its own operations by 12%, demonstrating that clear targets combined with decisive action leads 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 emissions created by its financing and investment activities, which account for a major part of their overall footprint.
• By 2045 at the latest, KGAL aims to achieve net zero emissions, showing that responsible investment and climate action belong together.

KGAL on working with ClimatePartner

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

— Hannes Tausend, Head of ESG, KGAL