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Responsible spotlight - March 2021

3 years ago

New facts and insights from the world of responsible investing, available to you every month.

The race to zero

In the past weeks, payments provider Mastercard and computing pioneer IBM have both pledged to become net zero for carbon emissions. This means that they will offset their carbon emissions by removing an equal amount from the atmosphere. There are many ways to achieve this, from restoring forests to harnessing new carbon-capturing technology.

Mastercard and IBM are the latest in a growing list of companies and governments that have pledged to become net zero, as the risks of climate change become increasingly clear. Global net zero commitments roughly doubled in 2020, and there is no sign of a slowdown in 2021. In January, US President Joe Biden announced the United States’ net zero ambitions, joining the European Union, China and many others. Companies such as Amazon and Microsoft have made similar pledges. The AXA Group has also shown its commitment to net zero emissions, by joining the Net Zero Asset Owners Alliance. AXA and other members have committed to achieving carbon-neutral investment portfolios by 2050.

Roundel 1

Our view

To reach these ambitious targets, carbon emissions will need to be cut drastically over the coming years. There are countless different ways to do this. But a transition towards clean energy and transport appears to be high on the global agenda, alongside more energy-efficient buildings and agriculture. These widespread changes across society will create many new opportunities for investors, as well as risks for those companies or industries that are left behind.

Our approach

At Architas we specialise in multi-manager, multi-asset investing. We work with fund managers to ensure they are investing responsibly and focusing on environmental, social and governance (ESG) issues. In 2018, we began our journey to full ESG integration across all of our offers, and we aim to achieve this by the end of 2021. Since 2018 we have also been signatories of the United Nations Principles for Responsible Investment. For more information about our responsible investing process please click here.

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