Policy makers response is the next pivotal step in sustainable investmen according to Victor Verberk, CIO fixed income and sustainability at Robeco. He predicts that policy makers reaction will appear via taxes or import tariffs with a “devastating impact” on companies that will create winners and losers.
Portfolio alignment is a hot topic and key area of focus for the TCFD and COP26 private finance team. But what is it really telling us and how will it influence investment decisions?
Asset owners’ seeking to achieve net zero in their infrastructure allocations should embark on detailed strategic planning, set interim targets and ensure transparent insight and regular reporting. Strong leadership and clear governance frameworks are also essential – all the while fulfilling fiduciary responsibility to seek superior long-term returns.
China’s pledge to achieve carbon neutrality by 2060 will require radical change and formidable challenges lie ahead. But as delegates at the Sustainability in Practice event heard, investment opportunities include renewables, electric vehicles and energy storage.
Nature is increasingly viewed as an economic asset, or natural capital. Identifying the natural capital assets that can be used most effectively to offset carbon, such as land and forestry, can provide a real advantage in the path to decarbonising investment portfolios.
Real estate accounts for nearly 40 per cent of energy-related carbon emissions but cutting emissions to net zero in the sector is highly complex. Investors should focus instead on cutting emissions by refurbishing properties and avoiding new builds.
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