Sustainable investing
Launch of carbon offsetting share classes
We are committed to decarbonizing our portfolios to meet our net zero ambition and to contribute to the goals of the Paris Agreement. While decarbonizing our portfolios towards net zero by 2050, we will purchase carbon credits that can compensate for the financed emissions in (initially) three climate-based investment strategies. Each credit aims to compensate for one ton of CO2 equivalent emitted by a portfolio constituent.
Positioning and purpose
Carbon credits are not a substitute for real-world decarbonization, which requires companies to cut their own Scope 1 and Scope 2 emissions as well as emissions in their supply chain (Scope 3). Nor should they be counted as means of achieving net zero targets. But they can help to promote additional climate action by funding carbon removal or carbon reduction projects. They are purchased on voluntary carbon markets as approved by the International Carbon Reduction and Offset Alliance (ICROA). Each of the three funds will have a share class denoting that it includes these carbon credits.
What are carbon markets?
What is a carbon offset share class?
How do carbon credits work?
How does this fit into net zero?
What are the risks?
Carbon offsetting share classes
Projects
The carbon credits purchased will be used to fund decarbonization projects around the world. These can involve initiatives like tree-planting, enhancing energy efficiency, or leveraging technology to extract carbon from the atmosphere. At present, we support a project to repair leaking gas infrastructure in Bangladesh with the purchase and import of specialized Leak Detectors and Hi-Flow Samplers along with advanced sealant materials. Local people are also being trained in how to check for and fix gas leaks.
