The Investment team (Chief Investment Officer, Portfolio Managers and analysts) is responsible for the assessment and management of climate-related issues. The team has the accountability of integrating responsible investment into the investment philosophy and thus the entire team report to the board during the company’s general meetings.
Climate-related issues are researched using both internal and external research sources. We also utilise several quantitative tools such as The Paris Agreement Capital Transition Assessment (“PACTA”) tool, The Transition Pathway Initiative (“TPI”), 2 Degrees Scenario Analysis etc. It should be noted that these PRI-recommended tools do however have limitations. Aeon Investment Management is mainly invested in South African stocks. The recommended tools do not cover a significant number of companies operating in developing markets e.g. South African-based companies and thus we are only able to obtain a limited amount of information on the analysis of these companies. Companies also only disclose a limited amount of environmental metrics to the public thus further increasing the limitations to the analysis. Aeon Investment Management has raised these issues with the research providers.