Among the megatrends, sustainability takes a central place. How to invest in this theme? In this Thematic Investing video, three of our experts discuss investing in the energy transition, environmental sustainability, and equality and inclusive growth on the basis that sustainable growth is ‘the only plausible growth that we can aspire to’.
Jane Ambachtsheer, Global Head of Sustainability, covers topics including our net zero NZ:AAA framework and its role in thematic fund construction. She also touches upon the importance of being mindful of environmental stability and biodiversity when investing.
Edward Lees, Co-head of the Environmental Strategies Group, discusses the long-term opportunities around the energy transition, decarbonisation, natural capital and responsible land and water use. He highlights game-changing technologies that can open new markets and his focus on companies that are directly solving the problems.
Gina Wilton, Head of Business Management Fundamental Active Equities, takes up the subject of equality and inclusive growth, arguing that “social tensions affect the climate for doing business”. She notes that companies with responsible practices including decent work and decent pay, and affordable products, tend to have more resilient business models.
Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, (the Sub-Fund's) performance may at times be better or worse than the performance of relatable funds that do not apply such standards.