Climate and Environment

Helping you reach your climate goals

Russell Investments views climate change as a financially material risk, impacting sectors, industries, regions, and asset types across varying time horizons. Climate-related risks and opportunities are researched, measured, reported, and integrated into into our investment practices, active ownership, and business operations. As stewards of capital, we embed climate considerations to enhance long-term value creation for our clients.

Our approach to climate investing

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Client-Centered Portfolio Alignment:

We engage with clients to understand their financial goals and sustainability priorities, integrating consideration of climate-related risks and opportunities to align portfolios with long-term objectives. 

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Forward-Looking Investment Strategy:

We anticipate structural shifts from policy changes, technology, and consumer trends, selecting and overseeing investment managers who proactively manage climate risks while positioning portfolios for growth. 

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Transparency & Accountability

We provide our clients with clear disclosures on climate exposure and advocate for stronger financial reporting and industry standards. 

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Systemic Risk Management:

We monitor financial vulnerabilities to climate change, engaging with market participants to mitigate systemic risks and support investment outcomes for our clients. 

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Data-Driven Decision Making

We apply diverse tools and data analytics to continuously adapt to evolving best practices, regulations, and emerging knowledge to assess and manage climate risks and opportunities. 

2024 Climate Report

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Solutions to help you achieve your climate goals

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Advice

We help define and achieve your climate goals through tailored advisory services, addressing needs from education to policy setting.

 




Net Zero Target Setting:

We work with clients to establish their climate beliefs, identify impact areas, and set measureable climate targets. Using the PAII's Net Zero Investment Framework (NZIF), we help clients set credible targets and strategies aligned with each client's objectives. 

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Portfolio Management

A sophisticated range of tools and asset exposures designed to support your long-term sustainability goals.

 



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Russell Investments has a longstanding history of partnering with clients to design investment strategies that explicitly manage climate-related outcomes such as carbon emissions, fossil fuel reserves, and renewable energy exposure. Read our full Decarbonisation approach here. 
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Manager Research

Expertise in manager research and evaluation ensures access to best-in-class manager products and solutions across the sustainability spectrum.

 


Thematic Climate Funds 

We continously research and evaluate managers offering climate-focused strategies to be able to identify best-in-class solutions for clients looking to invest in thematic strategies.

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Active Ownership

Active ownership integrated as a core investment responsibility, with proxy voting, engagement, and industry collaborations central to the sustainability offering.

 

Climate as an Engagement Focus Area

Climate Change Resilience features as one of our key engagement focus areas and we promote increased transparency on climate related discloures and practices.

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Solutions

We deliver a range of solutions to meet the diverse risk, return and sustainability objectives of our global clients.
 

Net Zero Funds

Russell Investments uses the Net Zero Investment Framework (NZIF) as a foundation to design and implement net zero-aligned investment strategies. 

Impact

We build global, multi-manager impact solutions targeting climate themes and other sustainability priorities. These solutions can offer exposure to emerging managers and deliver diversified portfolios aligned with the UN Sustainable Development Goals (SDGs) with measurable impact outcomes. 

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Tools & Analytics Scenario Analysis

Proprietary tools and analytics deliver transparent reporting, enabling tracking of progress against climate investing goals and alignment with regulatory requirements.

 

Scenario Analysis

Our scenario analysis capabilities help evaluate the potential economic impacts of different climate scenarios on portfolio performance and security valuation.

 

Climate Reporting

We provide comprehensive climate reporting across portfolios. This includes key metrics such as Weighted Average Carbon Intensity (WACI), financed emissions, temperature alignment, ESG risk scores, and more. These insights help you understand climate-related exposures and track performance over time.

Our net zero commitment

Russell Investments recognizes that greenhouse gas (GHG) emissions are a key driver of climate change, which poses material physical and transition risks to companies, markets, and long-term investment outcomes. In response, we support the global goal of net zero GHG emissions by 2050 and recognize the role of investment strategies in contributing to a timely and orderly transition.

Our approach

Partner with interested asset owner clients and prospects to establish and achieve decarbonisation goals that support their global ambition to reach net zero emissions by 2050 or sooner. 

Set an interim target—guided by client mandates—for the proportion of assets to be managed in line with the attainment of net zero emissions by 2050 or sooner. 

Review our interim target at least every five years to reflect evolving practices and changing client needs and preferences. 

Annually disclose the share of AUM managed in line with net zero objectives, including context on investment approaches.  

Maintain a stewardship and engagement strategy that is responsive to client-directed net zero objectives and market developments. 

Engage with market participants, including delegated managers, to support the development of products and services that reflect climate risks and opportunities in line with clients’ net zero ambitions. 

Our collaborations

We collaborate with organisations that establish and drive sustainable investment practices.

List of companies we collaborate with
RECENT INSIGHTS
RECENT RESEARCH
Insights Research

Our experts work hard to solve the complex issues our clients encounter.

Our collection of research shows our dedication to solving complex investment problems.

COP16 – The role of geospatial data in pricing biodiversity risk

Biodiversity loss poses significant risks to asset value, and COP16 highlights the need for tools to better manage these impacts.

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COP29 – Looking Ahead

What do we expect at COP29?

How countries can deliver more financing to those on the front lines of the climate crisis.

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Is AI slowing down the energy transition?

Are the net-zero targets set by companies in recent years now at risk of becoming obsolete?

What is the impact of AI on power grids and the energy transition, and what are the corresponding investment implications?

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Any statements of opinion expressed within this publication are that of Russell Investments and are current at the time of issue. The information and opinion given in this publication is given in good faith. All opinions expressed are subject to change at any time. Russell Investments nor any of its staff accepts liability with respect to the information or opinions contained in this publication.

All investments carry a level of risk and do not typically grow at an even rate of return and could experience negative growth.

Any past performance results should not be seen as a guide to future returns. Any scenarios presented are an estimate of future performance based on evidence from the past on how the value of an investment varies and are not an exact indicator.

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Russell Investments' ownership is composed of a majority stake held by funds managed by TA Associates Management, L.P., with a significant minority stake held by funds managed by Reverence Capital Partners, L.P. Certain of Russell Investments' employees and Hamilton Lane Advisors, LLC also hold minority, non-controlling, ownership stakes.

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