Global Low Carbon Equity

Growing demand for strategies that help address climate change is partially linked to intensifying government efforts toward climate improvement.

Investors are increasingly focused on reducing the carbon footprint of their portfolios and investing for the future in companies that are well positioned for, or are aiding, the transition to a low-carbon economy. This shift has been gaining popularity as investors become increasingly climate aware, evolving what was once a niche approach into a widely accepted mainstream investment strategy.

Carbon emission levels vary widely across companies and industries. Factoring the cost implications of carbon emissions into the investment process in a clear and consistent manner enables a more insightful apples-to-apples comparison across the investment universe. This “price on carbon” priority is a dynamic factor that can dramatically change a company’s forecast in an instant.

Climate change and carbon risk are still often misunderstood by investors, so both tend to be mispriced by the market. We engage directly with management teams to assess their risk exposure to climate change and their long-term capacity and strategy to decarbonize. We seek to more fully understand companies' risk exposure related to climate change, evaluate their strategy for adapting businesses, and assess their long-term ability and willingness to decarbonize and address climate-related risks.

In the five years leading up to 2019, our research suggests that the highest-carbon-emitting companies underperformed, even as oil prices generally rose. We believe that a climate-resilient approach can help reduce risk in down markets and participate in up markets over time. The key is to actively select an optimal mix of high-quality, stable companies with reasonable valuations, focusing on firms with relatively low-carbon footprints and those well positioned to evolve, aid or benefit from the transition to a low-carbon economy. 

• Significantly lower carbon footprint and positive impact on climate change
  
  
• Limiting downside risk while retaining strong long-term performance generation potential
  
  
• Unique combination of low-carbon, quality, stability and price to create more ways to win

• Experienced global team with extensive research resources
  
  
• Proven track record, delivering strong absolute and risk-adjusted returns
  
  
• Unique insights and deep expertise enhanced by AB’s collaboration with the Columbia University Earth Institute

• Committed to serving clients' needs and partnering to develop services that meet investors' objectives
  
  
• Limiting downside risk while retaining strong long-term performance potential
  
  
• We are passionate about our goal to address climate change and committed to offering investors solutions to help lower their carbon footprints