Russell Investments’ Low Carbon Global Shares Fund – cutting-edge decarbonisation investment strategy
Russell Investments has launched a performance-focused low carbon global shares fund, responding to client demand for sustainable investment solutions that support the management of climate-change risk and the transition to a low carbon economy.
Designed with the firm’s proprietary ‘decarbonisation’ investment strategy, the Russell Investments' Low Carbon Global Shares Fund comprehensively considers the value and measure of carbon, green energy, and environmental, social and governance (ESG) characteristics. It does all of this while also avoiding the asset, sector and industry biases that can occur with a pure divestment approach.
The Fund goes beyond carbon reduction alone, aiming to provide an increased exposure to renewable energy, an improved aggregate ESG profile and a targeted reduction in coal exposure.
To learn more about the fund visit www.russellinvestments.com.au/responsibleinvestment
Q&A with James Harwood on the Russell Investments' Low Carbon Global Shares Fund
- You have recently launched the Russell Investments Low Carbon Global Shares Fund. Beyond maintaining returns consistent with the MSCI ACWI index, what are you aiming to achieve with the Fund?
The Fund has been designed to provide investors with access to a broad range of global shares in developing and emerging markets with a 50% reduction in exposure to carbon emissions and fossil fuels compared to the benchmark index.
- There is an increasing number of carbon-sensitive funds launching in the market. How does your fund differ?
The Fund harnesses our proprietary decarbonisation strategy. This strategy uses a holistic investment approach that encompasses companies’ carbon footprint, carbon reserves, ESG score and a proprietary green energy ratio calculation to determine its inclusion and weighting within the fund.
Rather than simply applying a direct exclusion strategy, our approach enables the Fund to positively support companies with significant investment in green power generation and those with leading ESG scores.
In line with Russell Investments’ cutting-edge research agenda, this Fund’s strategy will be continually updated to reflect developing trends in the transition to a low carbon economy. This offers clients a long-term solution that adapts to changing market conditions within a risk controlled framework.
Head of Strategic Partnerships
Ph: 61 2 9229 5521
Email: Nicki Ashton