Climate Fixed Income
Key points:
- At the forefront of the transition to a low-carbon economy
- Portfolio aim of 7% decarbonization per year, measured against a benchmark aligned with the Paris Climate Agreement
- Available as aggregate fixed income or credits, building on our experience in sustainability and fixed income investing
Philosophy
Robeco is committed to contributing to the 2015 Paris Climate Agreement and recognizes the responsibility the asset management industry has to address climate change risks. We are committed to reaching net-zero emissions by 2050. The Climate Fixed Income strategy invest globally in fixed income instruments in a way that strives to keep the temperature rise well below 2°C above pre-industrial levels, while pursuing efforts to limit the temperature rise even further to 1.5 °C.
The strategy follows an active and contrarian investment style with explicit climate targets in line with the goals of the Paris Climate Agreement.
Process
The Climate Fixed Income strategy combines our top-down view on rates and/or credit markets, to determine overall risk positioning, with bottom-up fundamental research to identify the best investment opportunities consistent with a Paris-aligned framework.
Climate change considerations are fully integrated in the investment process across multiple components, including climate specific exclusions of fossil fuel, bottom-up issuer analysis and portfolio construction. Furthermore, we will continue to engage with investee companies to drive emission reductions in the real economy and create real-world impact. We ask companies to implement a strong climate governance framework, to take action to reduce carbon emissions, and to improve their reporting related to climate change.
Team
The strategy is managed by a highly experienced department of more than 30 macro and credit specialists to identify the best opportunities in global fixed income markets. This strategy benefits from the proven track record of the Robeco Global Macro Fixed Income and Credits teams. Sustainable expertise, including data on greenhouse gas emissions, is sourced internally from our dedicated Sustainable Investing Center of Expertise.
