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Investor's guide to decarbonisation: part 2 - implementing a net zero plan

Once a goal to reach net zero has been set and motivations and interim targets considered, the plan must be put into action. But how to actually decarbonise your portfolio? We answer this question in the second part of the decarbonisation client guide series.

31/08/2023
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Authors

Barbara Wilson
Head of Sustainable Solutions
Ben Popatlal
Multi-Asset Strategist

We believe managing a portfolio along a decarbonisation pathway should not be mechanical, and should use all the tools available – with a particular focus on engagement before exclusion.

However, that engagement must be targeted, well documented and tracked to ensure the portfolio is on the right trajectory, and portfolio reallocation may be needed in addition to ensure the decarbonisation goals are met. Partnering with the right manager, with an appropriately designed mandate is paramount to achieving the right balance of strong risk-adjusted returns with the appropriate level of decarbonisation, adjusted to allow for the starting point of the portfolio.

Part one is available here.

Schroder Investment Management Limited - Dubai Branch is a DIFC Foreign Recognised Company. The DIFC Branch is duly authorized and regulated by the Dubai Financial Services Authority. The content of this material is not intended nor is it to be considered as financial advice and is only for the purpose of knowledge. This material has not been approved by any regulator/authority in the Middle East region. Accordingly, no regulator/authority has approved this information material or any other associated documents nor taken any steps to verify the information set out in this material and has no responsibility for it.

 

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Authors

Barbara Wilson
Head of Sustainable Solutions
Ben Popatlal
Multi-Asset Strategist

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