Some 93% of global food giants have been given the lowest ratings (‘E’ or ‘F’) based on their performance impact in the latest Business Benchmark on Animal Welfare (BBAW) report, with investors such as Aviva, Candriam and Robeco set to engage food companies over the findings. A ‘Performance Impact’ assessment analyses the tangible impact on the lives of farm animals reared for food in corporate supply chains. For example, progress on issues such as the time farm animals spend in live transportation, in close confinement such as gestation crates, or routine mutilation remains disappointingly s ..read more

Last year, research by ShareAction revealed just a quarter of the world’s 77 largest asset managers had made commitments on tackling deforestation. This alarming statistic speaks to the lack of urgency around tackling deforestation, with investors contributing to climate change and significant biodiversity loss. Investors, therefore, must commit to further action to progress towards deforestation-free targets, urged Dr. Carter Ingram, managing director at Pollination. For Earth Day, PA Future spoke to Dr. Ingram about how the climate change investment firm s ..read more

160 global financial institutions and two industry stakeholders have signed a statement calling on governments to negotiate an “ambitious treaty” to end plastic pollution ahead of negotiations taking place at the fourth meeting of the Intergovernmental Negotiating Committee on Plastic Pollution (INC-4) next week. Signatories representing $15.5trn in combined assets – including AXA Investment Managers, Fidelity International, ING and First Sentier Investors – have asked for the treaty to be supported by binding rules and obligations for governments to address the full life cycle of plasti ..read more

The complexities of sustainable finance advice have been reported far and wide but concerns are rising around how social media platforms, such as TikTok, are misinforming younger generations – and investment professionals are being urged to step in. Last year, a 1,000-person survey conducted by the Financial Conduct Authority (FCA) found 44% of ‘Gen Z’ – those born between 1997 and 2012 – believe social media provides worthy financial advice. Further, 41% of young people turn to social media to seek financial advice, preferring to learn from social media influencers rather than fina ..read more

Robeco has renamed its multi-asset funds to increase flexibility and to better emphasise the products’ heightened focus on sustainability. The Multi-Asset Income fund is now the Sustainable Income Allocation fund; the Multi-Asset Sustainable fund is now the Sustainable Diversified Allocation fund; and the Multi-Asset Growth fund is now the Sustainable Dynamic Allocation fund. The three funds – recently assigned Gold Morningstar Medallist Rating – have been grouped under the Capital Growth funds, making the multi-asset offering easier to access for those already invested in ..read more

There is alpha to be found in investing in the companies which act as the “picks and shovels” to sustainability. This is according to Sujaya Desai, a portfolio manager at Stewart Investors, who said that companies behind the scenes of sustainability themes often exhibit quality growth characteristics. “One of the phrases we use to describe the way in which we invest is to find the picks and shovels to sustainability,” she told a recent media roundtable in Hong Kong. “So rather than be at the very front end of a broad sustainability theme, sometimes the best way in which to benefit from that t ..read more

Investors in Asia should prioritise assessing physical risk, and adjusting fossil fuel and deforestation policies in order to mitigate climate risk, a report by the Asia Investor Group on Climate Change (AIGCC) has found. Although Asia’s investors are making progress on climate targets, challenges remain in reaching 1.5 degrees climate goals, the report State of Net Zero Investment in Asia said. It revealed although approximately 70% of Asia’s investors recognise the material risks and opportunities associated with climate, many still struggle to effectively manage these risks ..read more

More listed companies are setting science-based targets, and emissions disclosures are growing, but companies’ decarbonisation trajectories still place them on a path to warm the planet by 3 degrees celsius, the latest MSCI Net-Zero Tracker report has revealed. In the April review of the progress of publicly listed companies in the MSCI ACWI index, which has 2,841 constituents across developed and emerging countries, the research found one fifth of listed firms have set science-based pathways to align their greenhouse gas (GHG) emissions with net zero by 2050. This is an increase on last year ..read more

Increased demand for green bonds has spurred the standardisation and review process of the asset class, according to some investment specialists. However, investors are urged to proceed with caution given higher prices or ‘greenmiums’, alongside a lack of control as to how the money is ultimately spent by the issuers. Martin Foden, head of sterling credit research at Royal London Asset Management (RLAM), said he’s a “supporter” of green bonds and other labelled bonds on a conceptual level, for bringing important societal issues to the forefront of the investment community’s consciou ..read more

As the world moves towards a low carbon economy, demand for so-called transition minerals is rapidly rising. Electric vehicles, batteries, solar photovoltaic systems, wind turbines and hydrogen technologies all require specific metals like lithium, cobalt and nickel. And they need a lot of them. For example, a basic electric car requires six times more minerals than a conventional equivalent. Sourcing these minerals, however, presents challenges. Supply is concentrated in a handful of countries including China, Russia and the Democratic Republic of Congo. Geopolitically, this raises ..read more