Robeco said it will launch a range of public market transition investment strategies in the coming months, starting with Asian emerging market equities and bonds.
Robeco defines transition investments as “investments in strategies focused on preparing for, adjusting to, benefiting from, and/or contributing to the transition to a low-carbon economy.” This is in contrast to investing in companies that are already sustainable.
The company said the investment opportunities are most significant in Asia and emerging markets, where it will start its strategy. Asia accounts for half of the world's greenhouse gas emissions and is home to around 60% of the world's population, but it has struggled to unlock financial flows for investments that support the low-energy transition.
Robeco said its new strategy will seek alpha in all industries making the transition to sustainability, including high carbon-intensive sectors.
“Robeco now offers multiple strategies with clear climate targets and funds that invest in the enablers of the transition,” said Mark van der Kroft, chief investment officer at Robeco. Ta. “However, recognizing the urgent need for transition funding to support global sustainability goals, Robeco is pleased to also introduce investment in real transition assets on the public market.
“Our work stems from the understanding that an effective transition is more than simply investing in green technology.”
Mark van der Kroft, Robeco CIO
“Our work stems from the understanding that an effective transition is about more than simply investing in green technologies. It is important to drive meaningful change across all sectors,” he added.
Robeco says the asset manager has been able to apply transitional investments to public markets thanks to forward-looking metrics it has developed that “reliably distinguish transition leaders from laggards.” He says it can be done.
Tou Har Chow, Robeco's Head of Fixed Income Asia enables a diversified and balanced portfolio without inherent sector bias.
“Our approach emphasizes a clear intention to contribute to real-world transitions, with measurable outcomes and reliable progress reporting.”
Last month, Robeco's head of sustainability said the withdrawal of five of the world's biggest asset managers from the Climate Action 100+ revealed the “fundamental contradictions” in the commitment to net zero. , accused them of “doubling transition funding and seemingly ramping up funding.” It is an alternative to tackling real-world emissions reductions. ”
