Spotlight on Jennifer Anderson, Global Head of Sustainable Investment & ESG, Lazard Asset Management
Global Thought Leader Spotlight
Jennifer Anderson, Global Head of Sustainable Investment & ESG, Lazard Asset Management
In my role as Managing Director, Global Head of Sustainable Investment and ESG at Lazard Asset Management Limited (London) I oversee the firm’s Sustainable Investment and ESG integration strategy, working closely with our analysts and portfolio managers globally to deliver solutions tailored to our clients’ needs. Our investment approach is rooted in deep fundamental research which includes analysing financially material ESG considerations as we do other fundamental factors.
In today's rapidly evolving climate investing landscape, three key developments demand attention from climate committed investors:
Current solutions have not delivered on their promises
First-generation climate-focused equity solutions have proven insufficient. Thematic approaches often result in a narrow investment universe and challenging performance characteristics, while simplistic methods relying on exclusions, climate tilts, or linear decarbonisation targets create sector skews and fail to adequately assess transition potential. This is particularly evident in markets like Australia, where a resource-intensive economy presents unique transition challenges alongside significant renewable energy opportunities. Asset owners now seek more sophisticated, forward-looking strategies that provide diversified core equity allocations while identifying genuine climate leaders.Quantamental approach provides an interesting alternative
As investors reflect on the real impact of their investment strategies, they increasingly seek for greater customisation and deeper expertise to capture structural changes. As part of this they explore new approaches that leverage fundamental insights applied systematically. Our proprietary models identify companies well-positioned for the transition using a nuanced, forward-looking perspective across sectors.Three key proprietary tools have gained traction with our clients:
Our Climate Alignment Assessment Tool classifies companies across six alignment categories: ambition, targets, emissions performance, disclosure, decarbonisation strategy, and capital allocation alignment. This holistic model captures the complex assortment of decarbonisation pledges, evaluating their credibility and ambition.
Our Sustainable Revenue Opportunities Model identifies businesses critical to the transition, scoring companies providing greener, healthier, and fairer products and services. This helps balance the potential bias towards large-cap, high-emitting industries in climate alignment assessments.
Our Greenwashing Radar leverages AI and natural language processing to distinguish what companies claim about their environmental impact from what they actually do, helping reduce exposure to potential litigation and reputational damage. This integration of systematic and fundamental approaches creates a more comprehensive evaluation of a company's transition potential while maintaining portfolio diversification.
Active ownership: A strategic advantage
Active ownership is essential in today's dynamic regulatory environment. Investment professionals with deep expertise in business models and corporate strategies lead more impactful dialogues with company management and boards, driving significant change and embedding sustainability into investment decisions.Asset owners should base their engagement strategies on insights from global research platforms and sector analysts with extensive expertise. This detailed understanding of technologies, products, services, and business models ensures credible engagements that foster progress, identify genuine climate leaders, avoid greenwashing, and move closer to achieving net zero goals.
Key takeaways for sophisticated investors
The journey towards a lower carbon economy is fraught with challenges but also rich with opportunities. The evolving regulatory landscape, combined with the need for sophisticated, forward-looking strategies, is driving asset owners to seek solutions that offer nuanced perspectives on climate risks and opportunities.
By leveraging proprietary models and maintaining a strong focus on active ownership, asset owners can navigate these complexities and drive meaningful progress towards a sustainable future.
Jennifer will be presenting at Global Investment Institute’s upcoming Net Zero Investment Forum, taking place on Thursday, 13 March 2025 at the Grand Hyatt Melbourne, Victoria. To register your interest in attending, click here or for more information email zlatan@globalii.com.au.
Jennifer Anderson, Global Head of Sustainable Investment & ESG, Lazard Asset Management
Jennifer is the Global Head of Sustainable Investment and ESG at Lazard Asset Management (Lazard AM). She oversees the firm's Sustainable Investment and ESG integration strategy and leads client engagement. She works closely with analysts and portfolio managers to enhance their investment processes and on developing new strategies. Jennifer sits on the Lazard AM’s Active Ownership Committee. She also leads client engagement and thought leadership on ESG topics.
Prior to joining Lazard in 2019, Jennifer was an Investment Manager for TPT Retirement Solutions and during this time she also served on the Board of the Directors of the Institutional Investors Group on Climate Change (IIGCC). Her prior role was as an equity research analyst in sustainable investment at Citigroup Global Capital Markets and she started her career in 2006 as an SRI analyst at Jupiter Asset Management.
Jennifer has a bachelor's degree in Economics and Economic History from the University of Leicester and a master's degree in Environment Technology from Imperial College London
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Disclaimer
The views expressed in this publication are solely those of the individual and do not reflect those of their employer organisation. These views should not be relied on as research or investment advice regarding any stock and are subject to change. There is no guarantee that any forecasts made will come to pass. Forecasts are subject to numerous assumptions, risks, and uncertainties, which change over time, and the individual undertakes no duty to update any such forecasts. International investing may involve risk of capital loss from unfavourable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations.
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