Private credit will play a vital role in accelerating the transition to a low-carbon economy.According to Rob Horn, global head of the Blackstone Credit Sustainable Resources Group, this role is set to get a whole lot bigger. Horn believes that credit will eventually supply as much as 60 per cent of the estimated $100 trillion needed to decarbonise economies around the world providing for a particularly attractive investment opportunity for private credit. An opportunity to drive attractive risk-adjusted returns, while potentially improving societal outcomes. In this exclusive fireside chat with Fiona Reynolds, chief executive of Conexus Financial and former head of the UN-supported Principles for Responsible Investment, Horn outlines Blackstone’s view on energy transition as a key investment theme for the firm; its approach to sustainable finance; and what is needed to encourage more institutional investors into this rapidly evolving space.
Divesting from the oil sector has been a boon for La Caisse’s performance, as the Canadian pension giant says its energy investments have earned billions in value-add compared to the benchmark since the inception of its climate strategy. Head of sustainability Bertrand Millot unpacks the fund’s approach in an interview with Top1000funds.com.
The $17.4 billion Danish fund for academics is emphasising all three letters in ESG. Its portfolio is shedding fossil fuels as it advocates for diversity and plots a new sustainable strategy.
Investment in African infrastructure has the potential to provide favourable returns, along with opportunities to make a big social impact. Study up and look past the headlines, Mercer writes.
Companies that deliver on sustainability are starting to trade at a premium and investors need to shop for value. New research, by George Serafeim, professor of business administration, Harvard Business School, shows big data and ESG ratings can combine to find alpha.
The $32.5 billion Australian superannuation fund has set emissions targets for portfolios and incorporated TCFD disclosure rules as it makes climate risk management a factor in awarding mandates.
Investors have plenty to gain from helping to protect human rights in supply chains and managing the human costs during technological disruption and the transition to a low-carbon economy.
Economics professor George Shultz told delegates a revenue-neutral carbon tax would have corporate support and would be effective, during a discussion of US and global climate policy.
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