Research

ESG Solutions: Low Carbon Emission Outcomes

By Gavin Smith & Sophia (Jingyan) Zhang

Industrial area of the city, harmful emissions into the atmosphere.

Overview*

An extension of the flexibility and practicality of our ESG Solutions framework, establishing a primary portfolio objective:

  • A carbon emission reduction of 50% is established compared to the benchmark as an explicit portfolio objective.
  • Stocks with low carbon emissions along with other attractive alpha attributes are targeted while controlling key risk exposures.
  • The resultant portfolio has a lower carbon emission intensity level relative to the benchmark and also delivers modest outperformance while maintaining comparable risk relative to the underlying index.

 

*Portfolio objectives are not guaranteed. Past performance is not a guarantee or reliable indicator of future results.