The Climate Assets Fund:

Environmental, social and governance (ESG) investing is a form of investing which involves assessing companies based on their  environmental, social and governance characteristics, as well as more traditional metrics such as profitability or market opportunity. Some might argue this is not new, as factors such as reputational risk and regulatory developments have always been part of fundamental analysis and risk assessment. However, the ESG approach involves a more systematic consideration of specific issues throughout the entire investment process.

In recent years, investors have become concerned about investing in oil and gas producers. The expected energy transition away from fossil fuels, driven by the need to combat climate change, has raised concerns that the value of many oil and gas producers’ reserves is in terminal decline. From this perspective, it is only a matter of time before these companies are sitting on stranded assets, having developed significant reserves of oil and gas for which there is no commercial market.

The government drive to tackle obesity and avoid strains on the NHS offers a wealth of opportunities for investors within the science, food manufacturing and healthcare industries.

The renewable sector is undergoing a fundamental change, closer than ever to a subsidy-free future driven by falling costs, technological innovation and climate change. While renewables cannot yet transform the entire energy system, they are becoming deeply disruptive in the electricity market.