Sustainability with Substance
Companies that are tackling climate change are at the forefront of innovation and have the potential to offer investors diverse and uncorrelated sources of returns.
Both traditional global equity investors and those committed to sustainable investment agendas would benefit from an actively managed allocation to the decarbonization theme. The benefits include:
- A differentiated source of potential returns through exposure to long-term structural growth which we believe will drive higher revenues, and profitability, for companies with strong competitive advantages — and hence superior share‑price appreciation.
- A diversified alpha stream with low correlation to typical core and growth equity exposures.
- Access to companies that are innovating, disrupting, and reinventing themselves in the environmental-solutions universe that are poised to grow and outperform.
- A hedge against systemic exposure to carbon, which is likely underestimated. We believe we are in the early stages of a decades-long trend towards a decarbonized economy, creating compelling investment opportunities.