OCTO HOT TOPIC Series - Investing for climate change
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About this talk
John Lappin is joined by guests including Gabriela Herculano, CEO, iClima Earth and Caroline Shaw, Portfolio Manager, Fidelity International. They discuss now that responsible investing is at the forefront of investors’ minds and tackling climate change is both the right thing to do and big business. From emissions pledges to renewables, most listed firms have engaged. But how can investors identify those making real change versus the empty sloganeering? How can clients’ individual needs be catered for?
Understanding what companies are doing in terms of meeting their environmental - and indeed wider ESG - credentials also formed an integral part of the discussion. Panellists were universal in their acknowledgement of the idea that relying purely on big data to dictate investment decisions here was largely unhelpful. Both iClima and Fidelity use proprietary methodologies in understanding how a company works and whilst this is a resource-intensive process, it provides a far more credible set of outcomes.
There was also consensus that further evolution in this market will be seen, whether that’s in terms of more sophisticated reporting mechanisms or via product innovation. The former is certainly helpful, but there was concern that flooding advisers with choice brought with it some inherent risks. However, underlying product development – such as the ability for investors to build an ETF from scratch which only invests in the assets they want – could provide valuable options as this market grows.
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