20 Mar 2023
15 minutes
The physical impact of climate change already affects the productivity of corporates on a global scale and across sectors – but financial markets do not currently price in the full range or magnitude of these risks. The pace at which corporates embrace and implement transition strategies will determine how fast and prevalent physical risks will rise.
The study by experts from Imperial and Reading, led by Dr Ajay Gambhir, brings to life the extent of physical risk to corporates and the potential scenarios that might follow. This research integrates financial markets with the science of climate change.
Imperial College London are at the forefront of climate finance and the study of natural sciences. Ninety One and Imperial College London have previously partnered a bespoke Climate Risk Education Programme to help our clients meet the challenges presented by climate change.
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.
To get to net-zero we have to finance the high emitting sectors and regions from a state of high carbon to a state of low carbon. The path to getting there is not simple or clear. Head of Thematic Equity Tom Nelson and Sustainability Specialist Annika Brouwer discuss the disorderly transition that is underway.
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.
It has been another strong year for EM equities, which has left many investors pondering where exactly we are in this cycle. Archie Hart and Varun Laijawalla explain why there is scope to capture a re-rating that they believe has considerable upside from here.
The AI theme in credit markets is evolving rapidly. New financing packages can provide better compensation for risk but they require careful diligence.
The headwinds facing EM debt today are cyclical and manageable, with mispricing and divergence across countries creating a fertile hunting ground for active investors. Crucially, the strength of structural tailwinds behind the asset class is undiminished.
Our EM Debt team shares its latest outlook and positioning across the investment universe.
Overlapping pressures across agriculture, fertiliser and energy markets could create fresh inflationary risks this year, with wide ranging implications for commodity markets, monetary policy and emerging market assets.
Global markets split sharply in July, as a reassessment of AI valuations collided with a renewed oil shock. Doubts over AI capex and monetisation weighed heavily on technology and semiconductor stocks, while the collapse of the US-Iran agreement drove oil prices sharply higher, lifting energy, defence, and value-oriented markets. The result was one of the sharpest rotations in market leadership so far this year.
Ninety One's multi-asset growth team provides insights into the macroeconomic environment that informs our investment outlook for the coming quarter. This includes concise summaries of our asset class views.
For years, capital has gravitated to the US. A one-way trade powered by tech dominance and economic heft. But as the world tilts on its axis, the next cycle is unlikely to resemble the last, and the investment map is beginning to redraw itself.
A shrinking supply of shares has flattered US equity returns for years. The AI issuance boom is putting that into reverse.
Our credit experts review how credit markets fared in the second quarter of the year and share the latest scorecards for the global credit universe.
Recent election results point to a political pivot with positive implications for debt markets. Dynamics in this key region are reflective of broader shifts across the maturing EM debt market.
Our EM Debt team shares its latest outlook and positioning across the investment universe.
Markets are pricing in a rapid normalisation of Middle East oil supply following the US-Iran conflict. The talk at a resources industry conference highlights that risks remain.
As AI euphoria drives markets to historic concentration levels, the question every investor should be considering is: how much longer can the music play?
Risk assets had one of their strongest quarters in years, with easing geopolitical risks in the Middle East backed up by resilient earnings, and continued AI-capex-driven growth. Emerging markets, especially Korea and Taiwan, outperformed the US, while commodities came under pressure after the peace deal and expectations for rate hikes. Global credit markets also delivered a strong rebound over the quarter.
A just energy transition is about more than decarbonisation. Using South Africa as a live example, this paper explores why credible transition outcomes depend on the alignment of policy, infrastructure, capital and communities, and the role investors can play in supporting them.
As global investors reassess their allocations, emerging markets are entering the second half of the year from a position of genuine strength.
A low multiple is not necessarily a sign of value. Genuine value arises when there is a gap between the market value of a company and its true intrinsic worth.
Rising risks are increasingly evident in developed private credit markets. However, the dynamics look very different in less explored jurisdictions.
AI and the Iran conflict are pushing Europe and the US onto sharply different economic and monetary paths.
Market and portfolio insights, webinars & events curated from across our investment teams to help you steer through changing investment landscapes.
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