With the honeymoon period for responsible investing fading how can investors play a role in climate transition?

CAMRADATA’s latest whitepaper, Climate Transition warns that the uncertainty surrounding climate change can get lost in the constant references to a 1.5°C rise in average global temperatures. It explores the complications of climate transition and asks how investors can design their portfolios to meet the challenges ahead.

This latest whitepaper offers insights from firms including Amundi Asset Management, Mackenzie Investments, Isio, Scottish Widows, Transport for London and WTW who all attended a roundtable hosted by CAMRADATA in London in May.

The report highlights the resurgence of fossil fuel prices and the value of companies that produce them, which is a reminder that decarbonisation will not be a straight path.

Panellists shared their views and discussed whether they had raised or reviewed their exposure, or those of their clients, to the energy sector over the past 18 months.

The report also considers the challenges with ESG data, including which set of data would most improve investors working lives, the obligations for large pension firms to publish data and concerns around data quality. also It also covers what policies the investors and asset managers would implement if they were Prime Minister for a day.

Natasha Silva, Managing Director, Client Relations, CAMRADATA said, “The last decade was a honeymoon for responsible investing when pension funds and insurers could earn handsome returns from carbon-light tech stocks. Meanwhile, the oil and gas sector has been a tricky performer since the Global Financial Crisis.

“Now they have come back with a vengeance post-Covid, at a time when the manufacturing costs of renewables, like so many industrial processes, have risen on the back of supply bottlenecks and greater labour costs. Ultimately much of the responsibility for steering humanity rests with political leaders.

“But companies and their shareholders also have a role to play in transitioning society from unsustainable to sustainable ways of living. They have plenty of cash to deploy on the right technologies, and the coming decade will see whether governments and capitalism can work well together to minimise climate change.

“Our latest whitepaper shares insight on the opportunities and challenges ahead, as the race to change human behaviour and save the planet gathers pace.”

To read the Climate Transition whitepaper, please click here.

For more information on CAMRADATA visit www.camradata.com