“As global climate initiatives struggle for consensus and companies frequently fall short of their targets, first-generation climate-focused equity solutions are proving insufficient. A more sophisticated approach combining quantitative rigour with fundamental insights - supported by meaningful active ownership - is essential to identify companies genuinely positioned for the transition to a lower carbon economy while delivering investment performance.”
- Jennifer Anderson is the Global Head of Sustainable Investment and ESG at Lazard Asset Management (Lazard AM) where she oversees the firm's Sustainable Investment and ESG integration strategy and leads client engagement.
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.
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.
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