Real world implementation options for investors looking to manage their equity portfolio carbon exposures

The first piece in our series on climate change and investment portfolios focused on the measurement of a company’s carbon exposure. In this paper we turn to actionable carbon management strategies available for investors. We look at carbon management strategies and identify four ways investors can address the carbon exposure of their equity portfolios. These strategies are:

1. Exclusions
2. Decarbonisation
3. Proxy voting and engagement
4. Green impact investing

There is no single ‘one size fits all’ solution for investors. Carbon management continues to evolve rapidly, driven by industry best practice, investor demand and regulation. It does seem likely though, that investing without regard to environmental impact will soon be considered an undesirable relic of the past.