Sustainability disruption: capitalising on externalities

Our Capitals Framework is an intrinsic component of the investment processes of our Sustainable Equity strategies.

Sustainability disruption: capitalising on externalities

Through the Capitals Framework, we assess investments across multiple dimensions of sustainability – including natural capital, social capital and human capital – which span the most common points of impact between a business or country and society.

We have published separate papers explaining how we analyse natural, social and human capital factors, which all include an introduction to the framework.

The fast view:

  • Companies are increasingly being held to account for their impacts on society and the environment, influencing their growth and profitability.
  • Investors need new tools to evaluate these impacts, or ‘externalities’, and hence identify opportunities and risks that the market may have mispriced.
  • The Sustainable Equity team has developed a Capitals Framework to assess a wide range of externalities.
Essentials of net-zero investing
Episode 0427 min20 Jul 2023
Sovereign carbon assessment

Carbon data is backward looking and needs a better measure at a sovereign level explains Portfolio Manager Nicolas Jaquier. In an interview with Sustainability Director, Daisy Streatfeild, he outlines the unique challenges he and the team face when measuring and assessing the net-zero impact of countries and how to align portfolios to this goal.

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All rights reserved. Issued by Ninety One, issued June 2021.