Global Environment Strategy

Invests in companies enabling the transition to a low-carbon world - seeking to capture the structural growth driven by decarbonisation
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 benefit from 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 unique 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.
Deirdre Cooper
Graeme Baker

Investment Approach

01

We 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.

02

We look across global value chains to identify companies generating revenues from businesses that are helping the world avoid emissions.

03

We target companies with three key attributes: growth potential, sustainable returns and competitive advantages.

04

We believe an unconstrained and focused approach, combined with a long-term investment horizon and active engagement, is the optimal way to invest in decarbonisation.

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General risks:

Past performance is not a reliable indicator of future results, losses may be made.

Specific Risks:

Commodity-related investment: Commodity prices can be extremely volatile and significant losses may be made. Concentrated portfolio: The portfolio invests in a relatively small number of individual holdings. This may mean wider fluctuations in value than more broadly invested portfolios. Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Emerging market (inc. China): These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems. Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company. Geographic / Sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that the resulting value may decrease whilst portfolios more broadly invested might grow.

Important information

All information is as at 31 March 2020 unless otherwise stated.

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