climate

Aware Super’s senior portfolio manager, Jenny Newmarch, explains how the Australian super fund is engaging with managers on climate change.

As another investor alliance is created, we should be getting clear roadmaps to action at the point of announcement.

The roadmap makes 37 recommendations for participants in the financial system that will help achieve net-zero emissions by 2050 and go further than government policy.

The group, which includes some of the world's largest private equity and infrastructure firms, pledges to share knowledge on climate-related risks and 'improve the resilience' of long-term investment portfolios.

The fund will target renewable assets in both Europe and North America and is open to further commitments from additional investors.

The firm's Global Transition Fund will invest in assets that will move the economy towards net-zero, including renewables, industrial businesses and infrastructure.

Climate initiatives by GPs tend to be about sharing good practice rather than systemic assessments across the portfolios, says Stephen Barrie, the pension's deputy director of ethics and engagement.

It is only when GPs play their part in climate change solutions that LPs can make their portfolios resilient and operational in the long-term, say panellists at PEI’s Responsible Investment Forum.

Some managers – mostly in Europe – are starting to speak a common language on climate, but US managers are lagging, say panellists at PEI’s Responsible Investment Forum: Europe.

Private equity energy investors embrace the promise but also the challenges of the transition from fossil fuels to the burgeoning renewables movement.