Climate Transition Assessment (CTA) and Transition Readiness Framework (TRF)
To support our clients' decarbonisation objectives, we have developed our proprietary Climate Transition Assessment (CTA) and Transition Readiness Framework (TRF) which can be used to offer enhanced solutions tailored to these goals.
5 minute read
Key takeaways:
- Our proprietary Climate Transition Assessment (CTA) assesses and scores issuers through a detailed ‘4-As’ method (Ambitions, Actions, Accountability, Achievements) to help identify material climate risks and opportunities.
- Incorporating CTA scores into investment analysis enables investors to more effectively identify companies that are on a credible path towards decarbonisation. This approach helps to mitigate risks associated with weakly positioned issuers and supports the pursuit of positive financial outcomes. By integrating these risks and opportunities into portfolio construction, investors can better position their strategies to contribute to global decarbonisation goals while managing long-term climate-related risks.
- Leveraging analyses from our CTA enables us to further evaluate companies actual decarbonisation efforts within out Transition Readiness Framework (TRF), focusing on substantive measures rather than just declared intentions.
At Janus Henderson Investors , our primary focus is on growing and managing our clients” capital while fulfilling our fiduciary responsibilities, which includes an assessment of companies’ climate transition relate risks and opportunities. To support our clients’ decarbonisation objectives, we have developed our propriety CTA and TRF which can be used to offer enhanced solutions tailored to these goals.
In summary: using the CTA as the centrepiece, the TRF is closely aligned with the Net Zero Investment Framework and is specifically designed to support investor committed to aligning their strategies and portfolios with the goal of achieving net zero greenhouse gas emissions by 2025.
All opinions and estimates in this information are subject to change without notice and are the views of the author at the time of publication. Janus Henderson is not under any obligation to update this information to the extent that it is or becomes out of date or incorrect. The information herein shall not in any way constitute advice or an invitation to invest. It is solely for information purposes and subject to change without notice. This information does not purport to be a comprehensive statement or description of any markets or securities referred to within. Any references to individual securities do not constitute a securities recommendation. Past performance is not indicative of future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
Whilst Janus Henderson believe that the information is correct at the date of publication, no warranty or representation is given to this effect and no responsibility can be accepted by Janus Henderson to any end users for any action taken on the basis of this information.
5 minute read
Key takeaways:
- Our proprietary Climate Transition Assessment (CTA) assesses and scores issuers through a detailed ‘4-As’ method (Ambitions, Actions, Accountability, Achievements) to help identify material climate risks and opportunities.
- Incorporating CTA scores into investment analysis enables investors to more effectively identify companies that are on a credible path towards decarbonisation. This approach helps to mitigate risks associated with weakly positioned issuers and supports the pursuit of positive financial outcomes. By integrating these risks and opportunities into portfolio construction, investors can better position their strategies to contribute to global decarbonisation goals while managing long-term climate-related risks.
- Leveraging analyses from our CTA enables us to further evaluate companies actual decarbonisation efforts within out Transition Readiness Framework (TRF), focusing on substantive measures rather than just declared intentions.