Aberdeen Standard Investment (ASI) has unveiled three climate change funds which support the shift towards net zero global emissions.
The funds adhere to EU sustainable finance disclosure regulation (SFDR) article 9 rules. Primarily, they each invest with sustainable goals in mind, in companies whose goal it is to reduce carbon emissions, for example.
ASI joins a pool of asset and investment managers ramping up their sustainable product offering to meet increasing client demand, and pressure from regulators clamping down on firms investing capital in companies with poor ESG credentials.
Earlier this month EdenTree launched a range of multi-asset funds targeted towards helping financial advisers navigate the risks and opportunities inherent in ESG-based investment.
Each ASI fund will focus on an aspect of the journey towards net zero, according to the company, offering investors opportunities arising out of the transition.
The ASI Climate Range includes the Aberdeen Standard Sicav I Global Climate and Environment Equity fund, Aberdeen Standard Sicav I Climate Transition Bond fund, and the Aberdeen Standard Sicav II Multi-Asset Climate Opportunities fund.
The equity fund invests in companies innovating in the net zero space, including net zero solutions providers.
The bond fund invests in leading emissions reducers, companies from high emission sectors with strong transition plans.
The multi-asset fund invests capital in climate solutions like clean energy, electric vehicles, and tech, using equities and bonds to build renewable infrastructure.
The bond fund will be run by a team of 130 fixed-income professionals managing over €16bn in fixed income ESG assets.
“Tackling {climate change} requires trillions of dollars of investment every year to transform our world into one that emits net zero greenhouse gases. This transformation comes with significant opportunities for investors,” said ASI head of climate change strategy Eva Cairns.
“To have real world impact, we need to look to the future and invest in the solution providers and companies that will help make this transition to net zero happen.”
According to the company, it will target climate solutions which the EU Taxonomy on Sustainable Activities define as ‘enabling the climate transition.’ To facilitate this the company has developed an analytical tool in collaboration with the Aberdeen Standard Research Institute to help identify the right companies.
“Our approach to climate scenario analysis is motivated by the view that a rigorous, forward looking and transparent methodology is essential for embedding climate risks and opportunities into our investment decision, making and delivering superior outcomes for our clients,” said Cairns.
“We believe that our bespoke approach represents a significant advancement in the field of climate-scenario analysis, giving us greater confidence in the results and their applicability to real-world investing.”
In March, ASI joined the Net Zero Asset Managers Initiative, a collective of managers working in collaboration with clients to meet net zero by 2050 targets.
Early this month, the initiative announced it had reached 128 signatories, managing $48tn in assets, as the sector reach a ‘net zero tipping point.’
