We believe the best way to capitalize on the climate transition investment opportunity is to identify companies that generate products and services that seek to address climate change issues. Using active management, we focus on companies we expect to facilitate strong carbon reduction prospectively, either through direct business lines/products/practices, or by providing products or services that enable other companies/consumers to lower their respective carbon footprints.
Companies engaged in climate change-focused businesses may be involved directly or indirectly in, among other areas, renewable power, water management, waste management, electrification, battery storage, mobility, hydrogen, biofuels, and agriculture, as well as other operations that help to facilitate a lower carbon environment.
The Fund will focus on companies whose business models either have a current, direct impact on lowering carbon emissions or which are investing significant capital in Property, Plan, and Equipment (PP&E), technology, and processes that will help facilitate lower carbon emissions in the future and which qualify as sustainable investments.
The Team employs a value-oriented, proprietary bottom-up driven and top-down research process to identify attractive relative valuation opportunities within the investment universe of equity securities of publicly listed companies, based on a proven investment approach for the Global Infrastructure Securities strategy the team has managed since 2010.
The portfolio is comprised of those securities which the investment team considers offer higher forecasted total return potential relative to other opportunities in the investment universe based upon absolute valuation within the investable universe.
Calvert is a pioneer in Responsible investing with 40 years of leadership and innovation in the industry. We are driven by a dual-mandate to provide competitive investment performance and opportunities for positive global change for our clients.
We believe this strategy fills a gap that exists in the real asset space, accessing infrastructure and related areas with an effective sustainable approach. For clients seeking exposure to Climate Transition themes extending beyond the primary areas of infrastructure, the Strategy will focus on impact companies with business models directly facilitating climate change mitigation.
With a “start-from-zero” investable universe, we can include companies that provide products and services that help to mitigate and/or adapt to climate change, allowing for differentiation between companies with sustainable competitive advantages and those with commoditized businesses.
We believe that investing in companies that generate value through providing positive solutions is more effective than taking a traditional approach to sustainability and decarbonization by excluding historical carbon emitters.