Candriam has launched a fund that will invest in global companies that provide long-term solutions to climate change, and will offset its emissions.
Candriam SRI Equity Climate Action claims to be one of the first actively managed thematic climate change focused funds that is also carbon-neutral.
The fund aims to identify companies it sees as “structural winners" as a result of climate change, or “leaders of climate action", such as those providing solutions in renewable energy, energy storage, recycling and waste & water management.
“Climate change is an unprecedented challenge, but also a multi-decade investment opportunity," said Koen Popleu, the fund's lead portfolio manager.
The fund will combine fundamental analysis and an environmental, social and governance (ESG) approach, driven by statistical data. Additionally, it has backing from Candriam's climate change advisory board and will report specific impact indicators on its holdings.
“As companies become more efficient and find alternative solutions to tackle adverse climate change impacts, our disciplined analytical approach identifies the ones which are best positioned to create long-term value," said senior analyst Elisa Vergine.
Swiss climate consultancy South Pole will offset the fund's carbon emissions. The projects from which the offsets are derived will target biomass, hydro and wind energy as well as energy efficiency and reforestation.
Candriam manages over €3 billion ($3.4 billion) in assets, including investments in the themes of biotech, robotics and oncology.