Editorial


SUSTAINABLE INVESTING


CONTENTS


P4 : Sustainable investing in figures The strategy explained in six numbers


Bad habits can be hard to break. Especially when they have changed the world. For more than a hundred years, the developed world enjoyed the ben- efits of booming economies thanks to coal, oil and gas as well as a continuous supply of freshwater. Yet the commodities credited with driving growth to new heights are the same that are putting us on the road to extinction. Burning oil and coal fuelled an industrial revolution and helped us travel further and faster than ever before, but the cost has been that average tem- peratures are hitting dangerous levels, resulting in extreme weather patterns and rising sea levels. Meanwhile, rising populations and growing corporate demand could drive countries to war over access to freshwater. Halting the damage to our climate, or even reversing it, is not easy as there is no efficient and scalable alternative to such unsustainable practices. But progress is being made. Technologies that generate energy from the sun and wind are maturing, while batteries are becoming more powerful, but national targets to decarbonise econo- mies set at 2050 and 2070 show how tough replacing fossil fuels is. Governments are raising billions to meet these targets, but pension schemes and insurers, which collectively control trillions in assets, are seen as being more influential. But are they using this influence over global markets and corporate boardrooms to drive the changes needed?


They are trying. I can’t name a pension scheme that does not have a sustainable ownership policy or at least a climate friendly strategy, but how effective are they? This supplement examines sustainable investing and responsible ownership, looking at the progress institutional investors are making in securing a future for the coming generations through promoting more sustainable practices. We hope you enjoy reading it.


Mark Dunne Editor


m.dunne@portfolio-institutional.co.uk


P5: The participants An introduction to those taking part in the roundtable


P6-21: The debate


Pension schemes, asset managers and a consultant join a campaigner to discuss the pros and cons of sustainable investing as well as the barriers to greater implementation


P22-23: People, planet and profit Jupiter’s Abbie Llewellyn-Waters outlines what she believes investors need to focus on to make the world more sustainable


P24-25: ESG and data Ian Burger, head of responsible investment at Newton, discusses the importance of accessing accurate and consistent sustainable data


P26: Feature: Electric vehicles Where are the opportunities for institutional investors to fund the green revolution on the world’s roads?


Feb 2022 portfolio institutional roundtable: Sustainable investing


3


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32