How can investors navigate the tension between the public pressure to devalue polluting assets by divesting, and the opportunity to create change from within by retaining a seat at the table?
Replied Apr 21
This is a great question and one that I alluded to earlier in how we’ve approached our fossil fuel investments. We believe that there are certain ESG risks that are uncompensated, which is why our ... Show more
ESG is about more than the Environment: it’s also about Social Impact and Corporate Governance. Aside from investments in companies that pollute the environment, what other types or categories of investments typically pose a risk or a hazard from an ESG standpoint, and what do you do about them?
Replied Apr 01
This is a great point, and certainly 2020 will be remember as the year that the “social” element of ESG rose in prominence. All signs indicate that social issues will continue to be a focus going i... Show more
Private equity firms are making fewer new investments in fossil fuels and are pivoting toward renewables. From a purely market standpoint, just how risky are fossil fuel investments going forward?
Replied Mar 22
Among the other trends that Covid-19 may have accelerated is the move away from fossil fuels. It remains to be seen if and how demand rebounds over the next few years, but there are more and more c... Show more
What criteria, aside from total carbon footprint, do you use to determine whether or not an asset is sustainable or unsustainable?
Replied Mar 15
Fundamentally we believe that the world – from a regulatory and technological perspective – is moving towards one that is lower carbon and eventually net-zero carbon. So, for us, an asset is sustai... Show more
Replied Mar 04
In March of last year, SFERS was one of the first US investors to announce our ambition to be a net zero greenhouse gas emissions asset owner by 2050. This reflects an ambition to invest in alignme... Show more
Replied Feb 22
Our ESG program consists of three pillars. Pillar one comprises our corporate governance, proxy voting, and public company engagement work. Pillar two encompasses our work to integrate ESG consider... Show more
How do you balance returns against ESG criteria? In other words, are there different thresholds for an investment’s success depending on its environmental sustainability rating?
Replied Feb 11
Our hybrid quantitative/qualitative investment process begins with a series of quantitative inclusionary screens to shape what we deem as our “Environmentally Productive Investment Universe” (EPIU)... Show more
Replied Feb 09
The short answer is 100%. Fundamentally we believe that environmental, social, and governance factors can have a material impact on the value of companies and securities, as well as the macroeconom... Show more
Climate change is not only an area of interest to social impact investors; climate-related startups have also been attracting funding at higher rates than other startups. What areas of VC look attractive to you as an impact investor with a focus on the environment?
Replied Nov 08
Climate-related startups have a real opportunity to capture secular growth as the realities of climate change become more and more apparent. Whether involving technologies focused on climate mitiga... Show more
How do your organization's guiding principles or mission statement affect diligence and selection of fund managers?
We focus on partnering with managers who have a strong moral compass. We look for partners who are curious, interested, and aligned with our mission and the programs we support. In many instances,... Show more