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Solutions: a planetary problem requires a multi-faceted approach

Solutions: a planetary problem requires a multi-faceted approach

14-05-2021
Climate change is a planetary problem that requires deep and sweeping solutions with immediate and long-term effect. We recognize the urgency of decarbonizing portfolios but also in addressing the myriad of long-term sustainability challenges that deplete the Earth’s natural resources and indirectly contribute to global warming. Given the extent of the crisis, Robeco employs a multi-faceted approach to climate change. We offer clients a suite of investment solutions that stretch across fixed income, thematic equity and quantitative equity strategies.

Speed read

  • Paris-aligned fixed income strategies cut deep into country and company emissions
  • Sustainable thematic equity products take aim at long-term challenges that contribute to global warming
  • Sustainable quantitative equity strategies and active ownership also key in creating real-world impact

Robeco’s climate global fixed income strategies are directly focused on climate impact and are the most recent innovation in our sustainable investing capabilities.

They combine Robeco’s characteristic research rigor and sustainability focus with high benchmark standards to create investment strategies at the forefront in forging a path towards a low carbon economy. The Climate Global Bonds and Climate Global Credits strategies invest in global fixed income assets that strive to keep global temperatures in line with those defined by the Paris Agreement.

To do this the strategies cut deep into carbon emissions by investing in governments, sectors and companies working to substantially reduce their year-on-year carbon intensity. The two strategies are managed against rigorous Paris-aligned indices and exclude fossil fuel producers.

Climate Series – don’t miss a thing
Climate Series – don’t miss a thing
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Protecting the earth’s resources

Targeting carbon emissions is not enough. Investments also need to target wasteful processes and unsustainable practices that reduce the planet’s ability to regenerate itself and combat the effects of climate change.

Robeco’s sustainable thematic equity strategies address real-world challenges that extend across economic sectors and industry value chains. Challenges include ensuring clean water supplies, reducing pollution and waste, encouraging the efficient use of natural resources and decarbonizing an emission-heavy transportation sector.

Sustainable thematic strategies give investors exposure to companies creating positive impact on the earth’s climate and its other natural resources as well. Circular Economy and Smart Materials solutions are saving a planet drowning in its own waste. They invest in the technologies that are removing inefficiency and waste in supply chains and preserving resources for future generations. Moreover, smart farming and water solutions are sustainably feeding a growing planet. These strategies invest in companies focused on applying technological advancements that target depleting water supplies as well as enhanced farming techniques for better soil and crop management.

Finally, smart energy and mobility solutions are driving energy and transportation towards a net-zero destiny. The strategies invest across the clean energy and transportation value chains providing investors diversified exposure to the megatrends of decarbonization and sustainable mobility.

Going further – Quantitative equity and active engagement

In addition to climate-focused fixed income and sustainable thematic equities, Robeco also enlists its long-running expertise in quantitative investing to combat climate change. Robeco’s sustainable quant strategies already employ strict carbon footprint objectives, so tightening carbon emission restrictions and exclusion criteria to meet the Paris Climate aims is a natural next step. The quant teams are working hard to ensure that the Robeco Global Sustainable Conservative Equity strategy is the first quant equity strategy to become ‘Paris-aligned.’

Underlying all our investment approaches is a strong engagement and voting focus. The active ownership team actively engages with investee companies across investment portfolios to drive down emissions and improve sustainability in the real economy for enduring real-world impact.

This article is taken from our climate investing platform

Climate investing: from urgency to solutions
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