Robeco moves to exclude fossil investments
Robeco will exclude thermal coal, oil sands and Arctic drilling from all of its mutual funds in the next step of its sustainable investing approach, with the process to be completed by the end of Q4 2020.
However, the exclusion would not apply to client-specific funds and mandates.
Companies that derived 25% or more of their revenue from thermal coal or oil sands, or 10% or more from Arctic drilling would be barred from investment portfolios.
This step expanded the thermal coal exclusion policy that already applied to Robeco’s most sustainable and impact strategies.
Thermal coal would be excluded as it was the highest carbon-emitting source of energy in the global fuel mix.
Oil sands are among the most carbon-intensive means of crude oil production, and Arctic drilling posed higher risks of spills compared to conventional oil and gas exploration, as well as potentially irreversible impacts on the Arctic ecosystem.
Robeco said active engagement with companies was in the long-term interest of society, but engagement with particular companies would not lead to significant change.
The firm would focus on sectors and companies where engagement would be more effective.
Victor Verberk, Robeco fixed income and sustainability chief investment officer, said investing was not only about contributing to wellbeing.
“Our move to exclude investments in fossil fuels from our funds is a further step in our efforts to lower the carbon footprint of our investments, transitioning to a lower carbon economy,” Verberk said.
AUTHOR
Chris Dastoor
Recommended for you
With BlackRock recently combining both private and public markets in a single managed account for US investors, commentators explore the challenges and opportunities of doing so in Australia.
PM Capital has hit out at Platinum Asset Management, saying the firm only provided “limited engagement” following its bid for two listed investment companies.
Platinum Asset Management has seen outflows moderate during March, down 15 per cent from the previous month when it announced two major investment team changes.
Two listing experts have shared tips for fund managers to consider when it comes to launching their first ETF on an exchange.
