Address Climate Change in Your Equity Portfolio
Our Climate ESG International Equity Strategy (the Strategy) seeks to align with the goals of the Paris Agreement, allowing investors to mitigate current and future carbon emissions, and reallocate capital towards companies generating higher green revenues and adapting to climate-related risks.
Climate Targets
Revenues from low-carbon technology and “clean” energy production. 1
GHG emissions resulting from a company’s fossil fuel reserves. 1
Direct and indirect GHG emissions. 1
Adaptation Score on Climate change preparedness. 1
Revenues from extractives activities 1
Lose the Carbon, Keep the Returns
The Strategy seeks to achieve the most efficient trade-off between climate targets, R-Factor™ improvement, tracking error and diversification, while achieving long-term returns broadly in line with the MSCI World ex-Australia Index.
The Strategy is characterised by the following:
Mitigation and Adaptation
Reallocates capital away from companies with high carbon emissions and brown revenues, and increases exposure to new energy and green companies.
To help build a more climate-resilient portfolio, the Strategy also increases exposure to companies working proactively to minimise their exposure to actual or expected physical, economic and regulatory impacts of climate change.
Aligns with the Paris Agreement
The Strategy seeks to align with the ambitious goals of the Paris Agreement - including limiting climate change to the 2° Celsius warming scenario relative to pre-industrial levels.2
Exclusionary Screening
The investment process begins by excluding companies involved in activities relating to controversial weapons, severe ESG controversies, thermal coal, tobacco and violations of the UN Global Compact.
ESG Scoring
Provides an increased exposure to sustainable companies that score favourably by our ESG scoring system (R-Factor™).
Meets Client Objectives Flexibly
The Strategy framework can be customised to meet each investor's needs in terms of climate and ESG priorities, desired benchmark, tracking-error budget and any exclusions needed to meet international norms or sustainability considerations.
Targeted Climate and ESG Objectives
How to Access
The Strategy is available via a separately managed account only.