There’s more than one way to decarbonise a portfolio
A client we work with recently decided to target net zero across all its operations and services. But there was a problem. The managers of its pension fund weren’t sure of the best way to achieve this goal across their entire investment portfolio.
As investors move beyond setting long-term targets and start implementing concrete actions to achieve them, they face common problems: how to measure companies on their progress and credentials? What path towards net zero should they assume? How do you benchmark results? Or how to deal with the crowding out – and volatility – of some sectors most obviously contributing to the transition?
For our pension fund client, early discussions focused on a traditional credit…
