Global Lower Carbon
We believe that climate change will have material long-term financial impact for investors. Markets may not currently be pricing climate change and carbon risk properly. As climate-related risks materialise and carbon is more effectively priced, a lower-carbon investment strategy could provide downside protection and create opportunities.
The climate change challenge
Climate change is the number one long-term investment risk, according to the World Economic Forum Global Risks Perception Survey 2018. It will impact the way company business models operate and companies’ earnings potential over time. Financial impacts will mainly come from regulation or policy changes, such as government action to limit temperature increases, and from the direct, physical impacts of climate change. Timely action by investors could help mitigate the risks associated with climate change in their portfolios.
Tackling the risks and leveraging the opportunities
By investing in the transition to a lower-carbon economy, investors can both reduce the potential risks associated with climate change in their portfolios and capture the opportunity from companies developing new technologies to tackle climate change and those set to benefit from the falling cost of clean technology.
Unlocking sustainable investment solutions
We believe that the world needs to move to a lower-carbon economy to tackle climate-related investment risk. This is the purpose of our new Global Lower Carbon funds designed to provide investors with investment solutions with a reduced carbon footprint with no sacrifice of financial performance.