Sustainability Community

Dear All,

Please see below the link and attached the report from Ninety One that was published last week on "Net Zero: Searching for returns and real-world change".

https://ninetyone.com/en/newsroom/net-zero-searching-for-returns-and-real-world-change

The main argument is that asset managers need to shift their focus from reducing financed emissions towards financing reduced emissions. This can be achieved mainly through 4 actions:

- Add dedicated climate solution and transition sleeves, which enable targeted allocations to generate impact through reducing and avoiding emissions, provide diversification and complementary performance profiles.
- Refine net-zero strategies for existing allocations to equities, corporate fixed income and sovereigns to more effectively use engagement and capital allocation to maximise impact, manage risk and maintain return objectives. This includes differentiated approaches for active and passive exposure.
- Adding or enhancing allocations to private markets and real assets given the very significant potential for delivering real economy impact.
- Impact can be further amplified by increasing active allocations, increasing emerging market allocations, and increasing allocations to transition investments and climate solutions.

Regards,

Attachment(s)

91-net-zero-investing-searching-for-returns-and-real-worl...pdf   1.09 MB 1 version