Climate

We are concerned that climate change represents a systemic social, economic and investment risk. Climate change is now an unavoidable question. All investors are exposed to the impact, not just of global warming and environmental damage themselves, but of political and economic action to tackle their causes. Investors must make sure any exposures to these risks are considered thoughtfully and managed alongside opportunities in solutions to the climate challenge.

We aim to transition the portfolios we manage to reflect the commitments governments have made, pre-empting – rather than reacting to – the risks and opportunities a climate transition will create. In transitioning those portfolios, we focus on supporting and encouraging transition in companies and assets, rather than divestment. 

We believe it’s essential to understand not only what impact climate transition will have on companies, but also whether companies’ valuations accurately reflect the risks or the benefits the transition creates for each company. We expect that selectivity in climate investing will become more important than ever in the clean technology sectors. Identifying the businesses that are able to benefit from market growth will be increasingly critical.

Find out more about how climate change has affected our 30-year return forecasts.

We have a responsibility to manage the capital our clients entrust to us and to protect it from the risks that climate change poses and to take advantage of the opportunities from the transition. Our path to navigating the impacts of growing social and environmental pressures lies in both the analysis we apply to investment decisions and the influence we can bring to the investments we have made. Whether through new insights, influencing through active ownership or innovation in investments, it is more important than ever to invest in finding answers to the complex problem of climate change.