AllianceBernstein has unveiled a strategy that it says aims to hugely lower the carbon footprint in MSCI World Index investments.
The firm’s AB Global Low Carbon strategy will factor carbon prices into its valuation of companies and through doing this could deliver a carbon footprint 90% lower than the index.
Engagement will play a key role in the investment strategy, as well as proprietary analysis of the “physical and transition risks” presented by climate change, according to the fund manager.
The strategy is managed by Kent Hargis and Sammy Suzuki, co-CIOs of the firm’s strategic core equities business, who collectively have over 52 years of industry experience. It will be made available to institutional clients.
Hargis said: “The idea that low carbon equates to low return is outdated. In fact, the opposite is true.”
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