FUND IN FOCUS 11
lay the foundations for future long-term positive im- pact in the real economy. Feasibility of engaging is key, in terms of both management teams’ willingness and ability to adapt. “Our engagement efforts are focussed on management teams taking appropriate action to deliver on our expectations,” Christiansen points out. NAM is committing to transparency on emissions through a measurement called cumulative issuer-level decarbonisation. Each year, the team will monitor the reported carbon emission change of every holding in the portfolio, with each annual change added to a cu- mulative portfolio total. “If our engagements bear fruit and the wider market begins to believe and endorse these companies, we will turn our attention to new companies with heavy footprints. This is how we plan to make the biggest real-world impact, and crystallise value for our clients,” Christiansen concludes.
duction process. However, despite its decarbonisation commitments, the company has only committed to a few green steel production projects so far. This is why NAM will keep engaging with management. “We will continue to hold management accountable to their decarbonisation commitments, and we are pushing for a more transparent and granular transi- tion plan,” Christiansen says. A tangible long-term difference For asset owners who seek to construct a portfolio targeting a lower carbon footprint, there are several approaches. One widely adopted course of action is to divest from high-emitting sectors and companies, which immediately reduces the carbon footprint versus the respective index. However, this approach penalises many sectors which are critical for the transition, while virtually eliminating the chance of real-world change. Another method is to invest in relative low emitters in a late transition phase. While this is effective at bringing a portfolio carbon foot- print down over the short and medium term, this fails to include investments able to deliver meaningful future decarbonisation. The approach which is best aligned with the real decarbonisation objective of the Glasgow Financial Al- liance for Net Zero is to invest in relative high emitters during the early transition phase. This approach may not result in an immediate positive benefit, but it will
Nordea 1 – Global Climate Engagement Fund
Alexandra Christiansen
Manager
USD
Base currency
LU2463526074 (BP-USD) LU2463525423 (BI-USD)
ISIN
26.04.2022 (BP-USD, BI-USD)
Launch date
ISSUE 01.2023
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