sustainable investing.

We have developed a series of strategies with three core pathways:

climate transition.

In March 2020, we launched our Climate Transition Strategy. This strategy is actively managed and invests in a high conviction portfolio of 40-60 firms positioned to grow in a carbon-constrained and carbon-damaged world, including hard-to-abate industries. It focusses on activities aimed at adapting to a climate-damaged world, such as flood defences and insurers, as well as activities aimed at adapting to a carbon-constrained world including efficiency solutions and renewables.

When selecting companies we look at three different types: solution providers, transitioning companies, and those who are adapting to a changing climate.

our Net Zero Investing Strategies.

As investors we embrace a more forward-looking perspective where we identify the companies that are fit for the transition and those that are not. We believe that actual climate-related financial exposure should be our guiding principle for allocating capital, and that we should stop simply focusing on low-carbon companies. Our investment approach is focused on understanding companies’ specific transition trajectories and assessing how aligned they are with the goals of the Paris Agreement. A granular understanding of how companies are approaching their decarbonisation pathway helps us evaluate the structure of their future cash flows and the likely impact on their valuations.

We call this approach Climate Value Impact and it allows us to deploy capital across all sectors and regions of the global economy without creating real biases and with a clear focus on the actual financial exposure of companies to climate change.

Our range of Net Zero Investing Strategies deal with the challenges of reaching net zero across asset classes, benchmarked to global and regional indices. They embrace every sector, not just the low emitters, and reflect our belief that there are no ‘good’ or ‘bad’ companies, only those in transition: moving fast, slowly, or not at all. These strategies take a science-based approach to achieving a 50% carbon emission reduction by 2030, and 100% by 2050. They seek investments that are resilient to, and positioned to benefit from, the seismic shocks of a net zero world. They focus on companies already aligned with the goal of net zero and those with the potential for acceleration.

Through our net zero fixed income and equity strategies, investors can pursue a net zero objective while maintaining the integrity of their portfolios and supporting companies that are driving the transition forward. Built to cover both global and European markets, our strategies are Paris-Aligned and contribute to a reduction in global CO₂ emissions.