How looking beyond green credentials could accelerate a lower-carbon world.
There are two ways of looking at climate change and its investment implications. Companies, and assets like real estate, are either part of the solution or will need to adapt.
Investors face a related conundrum: ‘Should you merely try to reduce the emissions in your portfolio, or become a meaningful part of the solution to climate change?’
The reality is that we can’t pivot to a lower-carbon world if all we do is rule out poor performers and only invest in companies that provide solutions to climate change.
All companies need to adjust for a warmer, lower-carbon world. And this creates diversification opportunities, as well as the chance to maximise positive impact.
Through our climate transition approach, we also actively seek to drive change by influencing businesses to reduce carbon emissions across their entire value chain – which can lead to a multiplier effect on the reduction of global emissions.
We believe the climate crisis will undoubtedly lead to compelling investment opportunities – in equities, bonds and real assets – that align with a low-carbon trajectory. The good news is that investors can access these while also having a greater influence on the climate transition.
Note: ESG and Climate related engagement, goals and exclusions can vary at the investment strategy and portfolio level depending upon country, jurisdiction and individual client needs.