Staying the course: Our updated climate and nature roadmap

Entitled ‘Staying the course: Guided by science, grounded in client interests’, the 16-page brochure is an update to our first roadmap to navigating the climate transition published in 2021. It details how in the next stage we are innovating our approach, based on the lessons learned over the past four years, amid a changing global landscape for net zero.

“The new geopolitical reality demands that we rebalance, innovate and segment our approach,” says Anton Eser, Chief Investment Officer and member of the Executive Committee, in the foreword to the new roadmap.

“As Investment Engineers, we also look beyond the current momentum to the scientific facts. The science hasn’t changed, and therefore we maintain our firm conviction about the direction of travel.”

“Our vision remains that safeguarding economic, environmental and social assets is a prerequisite for a healthy economy and long-term value creation. Addressing risks and opportunities from climate change and nature loss is in the long-term interest of our clients and our investment performance. We are therefore staying the course.”

The roadmap highlights the focus on investing in the low-carbon transition while recognizing the current decline in governmental efforts and the increasing regional differences. There are three pillars and six key actions:

By the end of 2024, Robeco’s investment teams had reached 56% of portfolio decarbonization based on our original carbon measure of Scope 1 and 2 emissions, or 44% when Scope 3 upstream emissions are included – well ahead of our original 2025 target.

The roadmap now covers EUR 139 billion of client assets, up from EUR 76 billion in 2020. Using our proprietary Climate Traffic Light, we aim to derive further decarbonization from exposure to climate transition leaders and solution firms, rather than from portfolio transactions. These companies are well positioned to deliver long-term value in a decarbonizing world, and Robeco’s research shows that this can support investment performance.

This focus on real economy transition is backed by a comprehensive stewardship program to encourage high-emitting companies to implement climate transition plans. We engage with over 100 companies annually, while our climate voting program now covers 300 companies. Going forward, we will integrate nature into this program, with a focus on the companies with highest impacts on water consumption, hazardous waste, and deforestation.

“In this update, we realize the world is now in a very different place compared to when we first released our climate roadmap in 2021,” says its main author, Lucian Peppelenbos, Climate and Biodiversity strategist at Robeco.

“Back then, there was a wave of net zero commitments from governments, industry and investors. Now, there are increasing regional differences as the world is marked by geopolitical conflict and deglobalization.”

“Our aim is to support clients across all these realities, to further their goals according to the stage they are at in the multi-speed transition.”