Storebrand Asset Management wants to intensify action on climate and to quicken the green transition. The policy outlines how Storebrand Asset Management aims to invest in order to mitigate and adapt to climate change going forward.
"We have a key role to play in accelerating the de-carbonization of the global economy", says Jan Erik Saugestad, CEO Storebrand Asset Management.
Climate risk is acknowledged as one of the greatest risks facing humanity. This realization is causing a massive shift of capital, away from the highest emitters of fossil fuels towards companies that provides solutions to the climate crisis.
Download the new climate policy here
Redirect further financial flows
– We are not only vulnerable to the systemic disruptions that climate change will unleash on ecosystems, societies, and our own portfolio companies. We also have a key role to play in accelerating the de-carbonization of the global economy, says Jan Erik Saugestad, CEO Storebrand Asset Management.
The recovery from the coronavirus pandemic is likely to redirect further financial flows as the rebuilding period ahead provides our best opportunity to make meaningful progress towards a greener and more climate-resilient economy.
As we combat COVID-19 we need to take the opportunity to refinance the recovery and growth in line with the Paris Accord and the UN SDGs. The rebuilding period will be our best opportunity to make substantial progress towards a greener and more climate resilient economy.
Among the initiatives highlighted in the policy are:
- Assure that all investment decisions are in line with scientific consensus and at all times seek to align the investments with commitments outlined in the Paris Agreement. The Intergovernmental Panel on Climate Change (IPCC) will be used as the scientific basis for investment decision making.
- Exclude companies that actively lobby against the Paris Agreement and climate regulation.
- Exclude companies that derive more than 5% of their revenues from coal or oil sands.
- Further develop climate risk analyses at a portfolio level and report on these analyses annually.
- Continue a holistic, ecosystem-based approach to climate change. This means that the policy highlights the need to preserve Nature's ability to absorb carbon from the atmosphere and store it in carbon sinks. Halting deforestation is the single most important goal here.
- Increase capital flows into low-carbon, climate-resilient and transition companies in order to avoid risks, identify opportunities and improve resilience to the effects of climate change.
- Reduce emissions from high emitting sectors, by exclusions or company engagement.
- Continue to build positive dialogue with energy companies, aiming to support their transition to low carbon and climate-resilient activities greening the real economy.
- Report progress transparently and frequently in all areas.
- Provide clients with a comprehensive range of sustainability and low carbon funds to help them decarbonize their portfolios.
As of today Storebrand Asset Management has a total of 34 billion USD in fossil free investment solutions.
– We aim to maintain our position as a leading provider of Sustainable solutions. With this policy we will excel and improve our work on climate and greening the financial system. We will use all the tools at our disposal including, divestment, investing more in solutions and engaging with companies in order to achieve substantial change, Saugestad concludes.
If you want to find out more about Storebrand's fossil free MSCI tracker Storebrand Global ESG Plus or the SDG solutions fund Storebrand Global Solutions please refer to https://www.storebrandfunds.lu/ or contact us on
e-mail: michel.ommeganck@skagenfunds.com
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