Viewpoint
Defining the Global Environment universe
The Global Environment team has identified a diverse universe of companies that they believe are benefiting from decarbonisation. This paper explains the methodology they use to find them.
Deirdre Cooper
Graeme Baker
Invests in companies enabling the transition to a low-carbon world - seeking to capture the structural growth driven by decarbonisation
Strategy overview
The Strategy aims to achieve long-term total returns by investing in the equities of companies expected to contribute to the transition to a lower-carbon global economy. It focuses on businesses in three key areas of decarbonisation: renewable energy, resource efficiency and electrification. The Strategy aims to have a measurable positive impact by financing companies that are solving the world’s environmental challenges.
Key Features
A compelling investment proposition
- The flow of capital into sustainable decarbonisation represents a powerful multi-year structural growth driver.
- A high-conviction portfolio of quality environmental solutions companies to capture the opportunity
A differentiated investment approach
- Uses a proprietary screen to build a universe of ~700 companies providing environmental solutions that are most likely to benefit from sustainable decarbonisation
- Incorporates Scope 1, 2 & 3 carbon emissions (risk) and carbon avoided (impact)
An experienced team
- Managed by an experienced team committed to environmental change
The world has a massive task ahead to transition from today’s unsustainable economy to one based on cleaner energy and transport, more efficient industrial production and more energy-efficient buildings.
Investment approach
01We believe that investing in decarbonisation offers investors exposure to a new structural growth area; the potential to hedge carbon risk; and the chance to make a positive impact. |
02We look across global value chains to identify companies generating revenues from businesses that are helping the world avoid emissions. |
03We target companies with three key attributes: growth potential, sustainable returns and competitive advantages. |
04We believe an unconstrained and focused approach, combined with a long-term investment horizon and active engagement, is the optimal way to invest in decarbonisation. |