Solutions: a planetary problem requires a multi-faceted approach

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.

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.

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.