Climate and nature
We expect companies to address challenges and opportunities relating to climate and nature.
We expect companies to
- understand the environmental and social consequences of their operations, products and services
- set net zero 2050 targets and targets to address material nature impacts and dependencies
- integrate climate and nature-related risks and opportunities into corporate strategy and risk management
- report regularly on the above
Climate change
Climate change affects corporate earnings and so the fund's long-term return, but it may also bring business opportunities.
We have been assessing companies with particular exposure to climate risk since 2010. As a financial investor, we have an interest in good and relevant corporate disclosure of climate data.
Nature
Companies face risks when natural resources they depend on become scarce or degraded, and when their environmental impacts lead to regulatory action, legal liability, operational restrictions or reputational risks. Evolving trends in consumer demands and availability of natural resources will also present opportunities as new markets are created.
Our nature expectations are aimed at companies in our portfolio whose activities or value chains depend on or affect land, freshwater, and marine ecosystems. We wish to support companies as they develop their strategy towards sustainable business operations.
Companies face risks when natural resources they depend on become scarce or degraded.
