Investment manager Robeco has launched two equity strategies and repositioned two existing fixed income strategies to help investors capitalise on the growth potential of companies committed to sustainable transitions.
The new equity strategies, Robeco Emerging Markets Climate Transition Equities and Robeco Transition Asian Equities, target the burgeoning market of sustainable transition. The Emerging Markets Climate Transition Equities strategy is focused on the shift toward a low-carbon economy, aligning with the Paris Agreement’s goals. Meanwhile, the Transition Asian Equities strategy encompasses a broader spectrum of environmental and social objectives in addition to climate transition.
Climate finance interview: Sovereign bonds to get ‘green’ finance boost
Additionally, the investment manager has repositioned its existing fixed income strategies to better align with its sustainability goals. The Transition Emerging Credits strategy, previously known as Sustainable Emerging Credits, and the Transition Asian Bonds strategy, formerly Sustainable Asian Bonds, reflect this new focus. The latter repositioning was initially announced in April.
Recognizing that Asia and emerging markets are at the forefront of this transformation, Robeco shared that it is directing its strategies towards these critical regions. Transition investing involves supporting companies at the beginning of their sustainability journeys, ensuring comprehensive economic greening rather than just expanding the green economy.
What’s holding transition finance back?
Robeco’s frameworks to assess the credibility of companies’ transition pathways allow identification and investment in transition leaders, who have historically outperformed their peers in both developed and emerging markets.
Lucian Peppelenbos, climate and biodiversity strategist at Robeco, said: “We acknowledge the significance and opportunities of transition finance. Our expertise in equities and credits, our deep understanding of emerging markets, as well as our sustainability background, are key ingredients to drive successful transition investments. In this way, we foster positive change and ensure that high-emitting companies are a part of the solution. Over time this creates broad-based value, and thus provides alpha opportunities.”
