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?

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

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?

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?

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

How do you measure the carbon footprint of your assets?

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

How is your ESG initiative structured?

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?

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

What portion of your organization's assets are included in your ESG program?

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?

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