Investors are increasingly recognising that the transition to a low carbon economy is the only way to future proof industries and ensure sustainable economic growth. Read below what some investors are saying.
“Mapping a company’s carbon footprint, or the emissions it produces, and measuring its progress in this area is an important and growing part of our portfolio analysis. Over the long-term investors are saying to these companies that we want them to align their business strategy with the Paris Agreement”
Anne Simpson, Investment Director, Sustainability at California Public Employees’ Retirement System
“If [companies] can’t show that they’ve systems in place to manage their environmental challenges then it suggests that management may not be up to standard in other areas too…..When analyzing utilities companies, indicators such as levels of ‘greenhouse gas emission/megawatt hour’ can help identify how efficiently a company is operating compared with peers.”
Ingrid Dyott, Portfolio Manager of $2.5 billion Neuberger Berman Socially Responsive Fund
“We want to know how exposed a particular business is to the changing context on climate and what it is practically doing to make the changes required; including its targets, timeframes and the extent of its ambition.”
“Being sensitive to the effects of climate change does not mean we will never invest in carbon intensive companies. When we do so, we arm ourselves as fully as possible with information on the risks companies face, the steps they are taking”
Andy Howard, Head of Sustainable Research at Schroders
“This is part of our ‘eco-efficiency’ initiative that we are rolling out with companies to reduce their energy and water use, and eliminate waste, as a next step for companies and investors seeking to address climate change.”
Steven Heim, Managing Director at Boston Common Asset Management
“Low carbon, sustainable investments are key to our future. The CRF is committed to asking high carbon emitting companies in its portfolio to take strong action by setting emission reduction targets and investing in emission reduction projects.”
Controller and Fund Trustee Thomas P. DiNapoli of the New York State Common Retirement Fund
“If we as active owners improve the performance of CO2 intensive companies, that will help us secure better returns in the future”
Jeanett Bergan, Head of Responsible Investment at KLP
To read full case studies about some of the companies who have set science-based targets, click here.