Portfolios aiming to identify companies that address key environmental themes and offer strong return potential
Nothing could be more important than the health of our planet. Increasingly, investors are prioritizing environmental issues and aiming to back investments that can help slow the pace of climate change and mitigate its impacts.
But climate investors face a crucial first step identifying portfolios that are specifically designed to help address climate risks and that are based on companies and governments that are genuinely striving to reduce their negative impacts on the environment.
Climate Change: The Biggest Challenge of Our Generation
For illustrative purposes only. As of November 2022
Source: Energy Transition Commission and AB
The Challenge
To reach net zero by 2050 and limit the rise in global temperatures, the world needs to decarbonize everything from power generation to transportation to manufacturing. We must also build resilience against the physical impacts of climate change by investing in infrastructure, food availability and water security.
This creates unique challenges, but we believe that skilled portfolio managers have an opportunity to: identify the industries that are key to addressing climate risks and the companies that are already generating green revenues or have ambitious transition plans for their businesses; make environmental, social and governance (ESG) factors a key component of their investment process; and engage with companies’ management teams and with government representatives to get insights into their climate planning.
Investment Solutions
Our climate-focused portfolios aim to identify key industries/themes and companies with genuine commitment to environmental improvement. These portfolios take different approaches to backing corporations that are leaders in the new technologies enabling a cleaner future and/or transitioning their businesses to a green model. Each portfolio offers different risk/return profiles to suit diverse investment objectives.
The value of an investment can go down as well as up and investors may not get back the full amount they invested. Capital is at risk.
The Portfolio/Fund is meant as a vehicle for diversification and does not represent a complete investment programme. Prospective investors should read the Prospectus, which includes Sustainability-Related Disclosures, and discuss risks and the Portfolio's/Fund’s fees and charges with their financial advisor to determine if the investment is appropriate for them. The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams and are subject to revision over time.
AB offers open-ended Luxembourg-based funds under AB FCP I, a mutual investment fund (fonds commun de placement) organized under the laws of the Grand Duchy of Luxembourg and AB SICAV I, an open-ended investment company with variable capital (société d’investissement à capital variable) incorporated under the laws of the Grand Duchy of Luxembourg.
Not all of the strategies and products we offer are available and/or registered for distribution in all jurisdictions. The sale of funds may be restricted or subject to adverse tax consequences in certain jurisdictions.
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