For our internally managed sustainability-themed strategies, sustainability is the main driver of alpha. In these strategies our sustainable investment framework can be used for positive selection of a universe of companies that are providing solutions to sustainability-related challenges (such as climate change), and/or those that are transition leaders within their sector or industry.
In the case of climate transition, for example, this process is used to narrow the initial investment universe from around 2500 companies to roughly 750 companies.
Our high-conviction managers then use this Climate Transition Universe as the starting point for further fundamental analysis and stock selection. The investment teams continuously work in close collaboration with our dedicated sustainability teams during this process, and on an ongoing basis, to inform investment decisions and engagement activity.