Dutch investment firm Robeco is launching a range of transition investing strategies across several asset classes in the coming months.
An estimated $125tn worth of investment is needed if net-zero goals are to be achieved by 2050, according to research commissioned by the UN High-Level Climate Action Champions, with support from economics consultancy firm Vivid Economics.
Robeco said the strategies will search for alpha in companies across sectors that are pushing for a sustainable transition. Using forward-looking metrics, the company hopes to identify transition leaders, including those in high carbon-intensive sectors.
Transition investing is mainly focused on private markets and real estate but Robeco said it aims to make this approach available to broader audiences. It will start looking in Asia and emerging markets, where investment opportunities are most apparent.
Robeco’s chief investment officer, Mark van der Kroft, said: ‘Effective transition is about more than just investing in green technologies, it’s about driving meaningful change across all sectors.’
He added that investing in green technologies and renewable energy is important, but they make up less than 8% of the global economy.
‘To get to net zero, a progressive decarbonisation of all sectors of the economy is needed. Positive change is expected when we make today’s high-emitting companies part of the solution by supporting their transformation towards a low-carbon future. Vice versa, the risk lies with transition laggards without adaption prospectives.’
Robeco’s transition investing approach will focus on financing companies that make progress in sustainable development, while adhering to key principles such as intentionality, measurability and credibility.
As of 31 March 2023, Robeco had €179bn in assets under management, of which €176bn is committed to ESG integration.
