Robeco has created a ‘no nonsense’ Net Zero 2050 Climate Equities strategy that will seek the world’s leaders in decarbonization. The criteria for inclusion is strict to avoid it morphing into “yet another environmental fund”, says its portfolio manager, Chris Berkouwer.

Companies that have a clear decarbonization pathway to becoming net zero by 2050 will be eligible, along with those that can help others to achieve it, such as mining equipment suppliers, nature-based assets or transition capital providers. The strategy will also have a clear focus on the ‘just transition’, incorporating social factors such as the potential loss of jobs among higher emitters.

The high-conviction strategy follows a dedicated climate transition benchmark, the MSCI World Climate Change Index, rather than a standard index. This will make it easier to judge the success of the strategy, says Berkouwer, who also runs the Robeco Sustainable Global Stars Equities strategy.

The world must become carbon neutral by 2050 if the Paris Agreement temperature targets are to be met. This seeks to limit global warming to 2 degrees Celsius above pre-industrial levels by 2100, and more ideally to limit the rise to 1.5 degrees. Some 1.25 degrees of warming has already occurred, due mostly to billions of tons of greenhouse gas emissions since the industrial era began.

Read full article:

https://www.robeco.com/en/insights/2022/07/robeco-launches-pure-play-net-zero-climate-strategy.html