Portfolios aiming to identify companies that address key environmental themes and offer strong return potential
Environmental factors are posing material risks—and creating opportunities—for companies around the world. Climate-focused investors seek to back investments that can help slow the pace of climate change and mitigate its impacts, while capturing strong return potential.
But climate investors face a crucial first step identifying portfolios that are specifically designed to help address material climate risks, based on companies and governments that are genuinely striving to reduce their negative impacts on the environment.
Climate Change: The Biggest Challenge of Our Generation
For illustrative purposes only. As of March 2023
Source: Energy Transition Commission and AB
The Challenge
To reach net zero by 2050 and limit the rise in global temperatures, the world needs to decarbonize everything from power generation to transportation to manufacturing. We must also build resilience against the physical impacts of climate change by investing in infrastructure, food availability and water security.
This creates challenges, but we believe that skilled portfolio managers have an opportunity to: identify the industries that are key to addressing climate risks and the companies that are already generating green revenues or have ambitious transition plans for their businesses; make material environmental, social and governance (ESG) factors a key component of their investment process; and engage with companies’ management teams and with government representatives to get insights into their climate planning.
Investment Solutions
Our Portfolios with Purpose aim to achieve financial objectives with a dedicated ESG focus. In our climate-focused portfolios, we aim to identify key industries/themes and companies with genuine commitment to environmental improvement. These portfolios take different approaches to backing corporations that are leaders in the new technologies enabling a cleaner future and/or transitioning their businesses to a green model. Each portfolio offers different risk/return profiles to suit diverse investment objectives.
The value of an investment can go down as well as up and investors may not get back the full amount they invested. Capital is at risk.
The Portfolio/Fund is meant as a vehicle for diversification and does not represent a complete investment programme. Prospective investors should read the Prospectus, which includes Sustainability-Related Disclosures, and discuss risks and the Portfolio's/Fund’s fees and charges with their financial advisor to determine if the investment is appropriate for them. The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams and are subject to revision over time.
AB offers open-ended Luxembourg-based funds under AB FCP I, a mutual investment fund (fonds commun de placement) organized under the laws of the Grand Duchy of Luxembourg and AB SICAV I, an open-ended investment company with variable capital (société d’investissement à capital variable) incorporated under the laws of the Grand Duchy of Luxembourg.
Not all of the strategies and products we offer are available and/or registered for distribution in all jurisdictions. The sale of funds may be restricted or subject to adverse tax consequences in certain jurisdictions.
Get AllianceBernstein’s latest insights delivered to your inbox
Personalise your preferences in our subscription centre and receive only the content you are interested in.
Investors face many strategic questions in today’s challenging landscape.
Find out more about AB's range of tools designed to provide potential solutions to your clients’ investment goals.
