A Paris-aligned solution
WHY INVESTORS MUST ENGAGE WITH CLIMATE CHANGE
Climate change poses risks to our way of life. It is also driving government policy that is set to transform how we produce and consume energy.
The investment community must play its part in accelerating change, to align our long-term financial risks with the long-term well-being of our planet.
Is climate active right for your charity?
The Sarasin & Partners Climate Active Strategy is available as a multi-asset or single asset portfolio, designed for charity investors who are seeking attractive and sustainable investment returns by investing in a way that is aligned with the Paris Climate Accord, keeping temperature increases well below 2°C and ideally 1.5°C while also pushing companies to align with the Paris goals.
Charities can access the strategy in one of two ways:
- the Sarasin Climate Active Endowments; a diversified multi-asset fund designed to achieve a total return of CPI +4% over the longer term.
- a segregated equity only portfolio; where trustees wish to only allocate to equities, a bespoke asset mix or require additional ethical exclusions
Combining investment and engagement
We aim to deliver attractive returns as the world accelerates its transition to net-zero-emissions by investing in companies that we expect to create value from strategies consistent with a well below 2°C cap in global warming. We also look for companies that will be resilient to the physical impacts of climate change already in the pipeline.
Not all companies are today aligned with the Paris goals, but most have the potential to get onto a net-zero pathway. Consequently, a key aspect of our Climate Active philosophy is to drive positive change pressing boards of directors to take steps towards strategic and operational alignment.
The anatomy of a successful engagement
We take great care in our approach to company engagement. Head of Stewardship, Natasha Landell-Mills, provides a window into how determined engagements play out in practice and shares examples of successes.
Active ownership
In our engagements with companies, the Sarasin Climate Active approach is informed by the Oxford Martin School Investment and Engagement Principles. This means that directors must commit to a 2050 to 2070 net-zero carbon emission pathway, and set out how they will get there in a way which enhances shareholder capital.
To achieve these engagement objectives, the Sarasin Climate Active approach uses active ownership tools ranging from voting and engagement, to public calls for action and building coalitions with like-minded stakeholders.
Company engagements are guided by our Climate Active Advisory Panel. The Panel comprises individuals with deep experience of activist investment, climate change, the Paris Accord and the energy sector. Their involvement helps to ensure that we select our targets wisely and that the engagements are effective.
Find out more about the Climate Active Endowment Fund
Is the world waking up to climate change?
We joined members of the Climate Active Advisory Board talk through the progress and impact of the strategy 3 years after launch and look at the past, present, and future of climate change.
Learn more
