28 Mar 2023
27 minutes
Click here to watch the full discussion.
By focusing allocations on financing real-world emissions reduction and using engagement to encourage net-zero alignment, investors can help to shift the economy toward a credible decarbonisation pathway, while optimising returns for clients and beneficiaries.
Asset owners weigh risks and opportunities of investing for an inclusive energy transition.
Many allocators we speak to understand the 'why' but ask 'how' assets can be mobilised to support the energy transition in emerging markets, while also contributing to return targets.
The world needs $4 trillion a year to reach net zero by 2050, with 25 % of this needed by emerging markets. Nazmeera Moola, Chief Sustainability Officer and Daisy Streatfield, Sustainability Director, discuss how if we are to achieve a real-world transition, investors must finance new infrastructure and industries in emerging markets that will help the transition and provide capital for credible transition paths of today’s high emitters.
How do professional investors and asset management firms use emissions data? And how does sustainability reporting need to evolve to meet the needs of today’s investors? Members of the Ninety One team shared their insights and experiences at a ‘CDP Signatory Day’ in May.
In this interview, we speak to Bridget Beals, Head of Climate Risk & Strategy at KPMG who talks to us about the engagements she’s having with companies across public and private markets and the transition plans she’s seeing from these companies.
Written by independent researchers from Imperial College London and Reading University through Imperial Consultants, this paper looks at the physical risks of climate change and its potential impact on corporates and financial markets.
Evidence suggests the transition to a low-carbon economy will be disorderly. By allocating to ‘transition assets’, investors can mitigate some of the disorder, while potentially generating positive outcomes for their portfolios. This paper makes the case for transition investing, and explains how to identify a true ‘transition asset’.
A year on from the launch of our Net Zero Sovereign Index, our EM Debt team explains how it now measures alignment with Paris climate goals and what that means for investors.
The oddly named Inflation Reduction Act introduces a raft of far-reaching measures that will support the energy industry in the US for at least a decade to come. This has positive implications for investors.
Efforts to tackle climate change are driving powerful trends in markets for many natural resources, from metals to fossil fuels – and in the equities of companies that produce them. That’s creating new opportunities for investors.
As the basis of the world’s energy supply shifts from fossil fuels to mainly metal-based technologies, we face upheaval in many commodity markets. There are opportunities for investors, but also potential pitfalls.
The net-zero transition imposes several challenges on asset allocators – not least dealing with inconsistent carbon reporting by asset managers, as well as the difficulty of communicating decarbonisation progress (or otherwise) in a way that is useful for end-investors.
Market and portfolio insights, webinars & events curated from across our investment teams to help you steer through changing investment landscapes.
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