Portfolio Chart: A menu of options as bond yields reset higher
With yields hovering close to decade highs across many fixed income sectors, investors are presented with a “menu of options”. Still, selectivity matters as recession risks loom.
Climate change can present important risks1 and opportunities. We disclose how we consider climate-related risk and opportunities in the assets we manage on behalf of our clients in our inaugural Task Force on Climate-related Financial Disclosures (TCFD) report.
Investors need clear, comprehensive, high-quality information on the impact of climate change, and this includes the risks2 and opportunities presented by rising temperatures, climate-linked policies and related technologies.
The scale and complex nature of climate change can challenge investors’ assessment of risk2. The current financial valuations may not adequately factor in climate-related risks because of insufficient information.
Do you know how the TCFD framework works?
The TCFD provides recommendations on the types of information companies should disclose to support investors, lenders, and insurance underwriters in appropriately assessing and pricing risks2 related to climate change.
Our inaugural TCFD report reflects our efforts and business practices on our journey to providing disclosures in line with the TCFD framework.
Do you know how we factor the impact of climate change?
We have systematically assessed and integrated financially material environmental, social and governance (ESG) factors, including climate-related risks and opportunities, into our investment process for certain actively managed strategies.
In addition to this, we believe we have an important role to play as investors navigating the transition to a low carbon economy.
In our view, meaningful greenhouse gas (GHG) emissions reductions in our investments are possible through:
Do you want to know more about our climate data & analytics?
We are working towards integrating climate-related data and metrics into a centralised platform alongside other material information used for portfolio management and research. The approach seeks to include what we have identified to be the relevant available data, scenarios and analytical tools, combined with the expertise of our dedicated climate researchers and our fundamental researchers.
We will continue to evolve and advance our reporting in line with industry developments and regulatory requirements. We seek to constantly improve our capabilities to promote sustainable business practices.