Climate Change: sustainable returns, real-world impact via active transition investing
How bond investors can potentially achieve decent returns for their portfolios and help the planet. Here’s an Asian perspective.
Climate change
2.4 °C *
is the warming trajectory we are on, based on 2030 country pledges
> 90%**
of global GDP is covered by net-zero pledges already
US$ 4 tn***
annual investment is needed into the energy transition, to reach net-zero by 2050
Enabling a net zero world
Climate change driven by rising greenhouse gas emissions is impacting every sector and region across the globe today – floods, droughts and extreme weather are becoming more severe and frequent. Climate change is therefore an urgent issue that needs significant finance flows into low carbon solutions. This creates compelling opportunities for industry, enterprise and investors to be part of the solution while creating alpha.
At Aberdeen Investments, we are committed to helping tackle climate change – for our clients, shareholders and future generations. We believe that investing in credible transition leaders and climate solutions that can transform our world provides us with a clear opportunity to deliver strong outcomes for our clients, and help the world on its path to net-zero carbon emissions. We incorporate the risks and opportunities related to different climate scenarios into our thinking and influence through our active engagement and voting approach.
Net-zero directed investing - what it means for Aberdeen
We are committed to delivering on our commitments to net-zero directed investing. That means, taking action to be a positive catalyst for net-zero via actions across six areas of focus:
- Investment integrationWe develop tools and processes to integrate climate change into our investment decisions.
- Climate research & dataWe undertake rigorous, forward looking research related to climate change impacts, including net-zero 2050.
- Investment solutionsWe develop climate solutions across all asset classes to enable our clients to achieve their goals, including net-zero 2050.
- TransparencyWe are committed to providing transparency via regular Taskforce on Climate-related Financial Disclosures (TCFD) reporting and enhanced ESG client reports.
- Active ownershipWe actively engage with corporates on their climate goals and actions and reflect our views in voting decisions.
- Collaboration & advocacyWe collaborate with industry initiatives to drive best practice related to net-zero and advocate for ambitious climate policy.
For insights on other research pillars
Environment - Preserving natural capital
Social - Promoting a fairer society
Cross ESG themes
Governance - Championing strong governance and business ethics
Find out more about Aberdeen Investments' sustainable investing