Global Climate Leaders
Low carbon, meet high potential. As environmental impacts increasingly translate to economic costs, the companies who lead the way in decarbonising their business offer the potential for the greatest success.Rapid decarbonisation requires ambitious and exceptional climate leadership – the planet’s survival depends on it.
The level of emissions reduction needed to meet the targets of the Paris Agreement is unprecedented. This monumental shift will require intense effort and leadership on a global scale.
Companies at the forefront of that shift, who show ambition in their climate goals, stand to gain hugely from this worldwide change.
How will the climate investing landscape evolve over the next decade?
Companies at the forefront of decarbonisation stand to gain massively from the shift towards net zero.
Companies with strong decarbonisation targets: what's the opportunity?
60 seconds with Simon Webber, Lead Fund Manager
By investing in companies positioning themselves to be ahead of the game in terms of climate goals and net zero, numerous benefits can be found.
These companies should present a lower risk profile as policymakers ramp up climate change regulation, while they would also benefit from lower costs as carbon is increasingly priced and taxed.
As more companies commit to net zero for direct and indirect emissions, a ‘network effect’ is anticipated whereby interdependent businesses must all contribute to net zero goals together to remain competitive.
- Climate Leaders: Companies that have ambitious targets to decarbonise in line with the Paris Agreement 1.5 degrees scenario
- Exhibit lower risk: Companies are less exposed to policy shifts and climate-related regulation
- Cost advantaged: Companies with lower emissions are well positioned as the price of carbon becomes material across industries
- Network Effect: As the decarbonisation movement gains ground, increasingly companies in the entire supply chain will have to increase standards
Meet the team
Global and International Equities
Meet the team
Global and International Equities
“Climate leaders are companies that have ambitious targets to decarbonise, consistent with or better than achieving a 1.5 degree scenario under the Paris Climate Agreement."
Head of Global Equities
Decarbonisation
The response to climate change will accelerate, with a focus on the energy transition.
What are the risks?
- Sustainability risk: The fund has environmental and/or social characteristics. This means it may have limited exposure to some companies, industries or sectors and may forego certain investment opportunities, or dispose of certain holdings, that do not align with its sustainability criteria chosen by the investment manager. The fund may invest in companies that do not reflect the beliefs and values of any particular investor.
- Currency risk: The fund may lose value as a result of movements in foreign exchange rates.
- Derivatives risk: Derivatives, which are financial instruments deriving their value from an underlying asset, may be used to manage the portfolio efficiently. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund.
- Emerging Markets & Frontier risk: Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty, operational and liquidity risk than developed markets.
- Stock Connect risk: The fund may be investing in China “A” shares via the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect which may involve clearing and settlement, regulatory, operational and counterparty risks.
- Liquidity risk: In difficult market conditions, the fund may not be able to sell a security for full value or at all. This could affect performance and could cause the fund to defer or suspend redemptions of its shares.
- Operational risk: Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to the fund.
- Performance risk: Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve.
- IBOR: The transition of the financial markets away from the use of interbank offered rates (IBORs) to alternative reference rates may impact the valuation of certain holdings and disrupt liquidity in certain instruments. This may impact the investment performance of the fund.
- Higher volatility risk: The price of this fund may be volatile as it may take higher risks in search of higher rewards, meaning the price may go up and down to a greater extent.
- Market risk: The value of investments can go up and down and an investor may not get back the amount initially invested.
Important Information
Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any financial instrument/securities or adopt any investment strategy. Past Performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of investments to fall as well as rise.