· Expanding current capabilities with new equity strategies and repositioning of existing fixed income strategies
· New strategies: Robeco Emerging Markets Climate Transition Equities and Robeco Transition Asian Equities
· Repositioned strategies: Robeco Transition Emerging Credits and Robeco Transition Asian Bonds
Robeco has strengthened its position in transition investing with the launch of two new equity strategies, and the repositioning of two fixed income strategies. The strategies allow investors to tap into the growth potential of the sustainable transition, both from financial and sustainability perspectives.
The Emerging Markets Climate Transition Equities strategy focuses specifically on the transition toward a low-carbon economy, aligning with the goals of the Paris Agreement. The broader Transition Asian Equities strategy also focuses on climate transition, but takes into consideration other environmental and social objectives at the same time. Next to the new strategies, Robeco repositioned two existing fixed income strategies: Transition Emerging Credits strategy (formerly Sustainable Emerging Credits) and the Transition Asian Bonds strategy (formerly Sustainable Asian Bonds); the latter was previously announced in April.
An estimated USD 125 trillion is needed to transform global emerging economies to net zero by 2050. As the biggest change is taking place in Asia and emerging markets, Robeco is focusing its strategies on those markets. Transition investing includes investing in companies who may be at the beginning of their sustainability journeys. Effective transition is about greening the entire economy and not just growing the green economy. The world doesn’t just need investments in solar panels and wind farms; it needs transition finance to provide the funding for businesses and sectors that are not so green today but will become greener over time.
With over 25 years’ experience in sustainable research and investing, Robeco has developed effective forward-looking frameworks that can reliably determine if transition pathways of investee companies are credible, and doing so can distinguish transition leaders from laggards. Robeco research indicates that transition leaders have historically outperformed laggards, both in developed and emerging markets. 1
Lucian Peppelenbos, Climate & Biodiversity Strategist at Robeco: “We acknowledge the significance and opportunities of transition finance. Our expertise in equities and credits, our deep understanding of emerging markets, as well as our sustainability background are key ingredients to drive successful transition investments. With Robeco’s forward looking frameworks, we can identify companies leading the transition and support them with financing. In this way, we foster positive change and ensure that high-emitting companies are a part of the solution. Over time this creates broad-based value, and thus provides alpha opportunities.”
