Dutch investment firm Robeco will launch a wide range of transition investment strategies across multiple asset classes in the coming months.
Achieving net zero targets by 2050 will require investments worth an estimated $125 trillion, according to a study commissioned by the United Nations High-Level Climate Action Champions with support from economic consultancy Vivid Economics.
Robeco said the strategy seeks alpha in companies across different sectors that drive sustainable transitions. The company wants to use forward-looking metrics to identify transition leaders, including high-carbon intensive sectors.
While Transition Investment is primarily focused on the private market and real estate, Robeco said it aims to make the approach available to a wider group of people. Start looking to Asia and emerging markets, where the investment opportunities are most obvious.
Mark van der Kroft, chief investment officer at Robeco, said: “An effective transition is about driving meaningful change across all sectors, not just investing in green technology.” .
He added that while investments in green technology and renewable energy are important, they account for less than 8% of the global economy.
“Achieving net zero will require gradual decarbonization in all sectors of the economy. By helping companies transform for a low-carbon future, we can make today’s high-emitting companies part of the solution. The opposite is true, and the risk lies with those who are slow to adapt.
Robeco's transition investing approach focuses on financing companies that advance sustainable development, adhering to key principles such as intentionality, measurability and reliability.
As of March 31, 2023, Robeco had assets under management of €179 billion, of which €176 billion was focused on ESG integration.
