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
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
