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Impax Asset Management

PRI reporting framework 2017

You are in Strategy and Governance » Innovation


SG 17. Innovative features of approach to RI

17.1. Indicate whether any specific features of your approach to responsible investment are particularly innovative.

17.2. Describe any specific features of your approach to responsible investment that you believe are particularly innovative.

1. Defining the investment universe for "Environmental Markets"

For Listed Equity strategies Impax has been working with index company FTSE since 2008 to manage and develop the classification system underpinning the FTSE Environmental Markets Index Series. We analyse, calculate and maintain the exact percentage of “Environmental Revenue” for each company in our universe. In 1999 this universe was 250 companies. It has grown rapidly and today it totals c. 1,600 companies.

2. Impax Impact Measuring Methodology

In 2015, Impax has developed an environmental impact measurement and reporting methodology for net carbon emissions, renewable energy generation, water savings and materials recovery and recycling. This methodology and the calculations were assured by Ernst & Young. Since 2016 this analysis now comprises two of our listed equity strategies. 

Impax Environmental Impact Methodology Paper, 2016:

3. Impax has developed a methodology to manage carbon risk in portfolios "Smart Carbon", taking carbon risk management beyond carbon footprinting.

In its role as a thought leading investment manager, Impax engages with clients and investors to raise awareness of climate change as a near-term investment risk. Over the years, Impax worked to develop a prudent investment approach to managing climate risk, beyond “low carbon” strategies, resulting in the Smart Carbon portfolio approach.  The approach quantifies the potential impairment to future cash flows of companies whose valuations are linked to fossil fuel assets (i.e. coal, oil and gas exploration and production (E&P) companies) and that may be impacted by government and regulatory intervention. The Smart Carbon methodology reduces carbon risk while maintaining energy price risk by suggesting the E&P stocks be replaced by Energy Efficiency stocks.

Impax Smart Carbon White Paper, 2016:

4. Investing in water: Tapping into a source of resilient growth, November 2016


17.3. Additional information.