In this episode of our “Global Perspectives” podcast series, Global Sustainable Equity Portfolio Managers Hamish Chamberlayne and Aaron Scully join Adam Hetts to discuss the latest trends in sustainability.

Key Takeaways

  • The US has undergone a huge shift in its stance towards sustainability, with the new Biden administration, the US Federal Reserve (Fed) and the Securities and Exchange Commission (SEC) all focused on tackling climate change.
  • A transformative synchronised investment boom into clean technologies is underway in the US and beyond, with the connection of digitalisation, electrification and decarbonisation improving efficiency across all industries.
  • Low-carbon investing is more than simply investing in renewable energy companies and removing fossil fuels from a portfolio. We see many opportunities in the technology, business productivity and building sectors that all have a place in creating a greener economy.
  • Intentionality, transparency and consistency are key tenets that span the broad spectrum of sustainable investing.

Glossary

Environmental Protection Agency (EPA) is an independent agency of the US federal government tasked with environmental protection matters

Securities Exchange Commission (SEC) is an independent agency of the US federal government set up to protect investors and the national banking system by enforcing the law against market manipulation

Alpha is the difference between a portfolio's return and its benchmark’s return after adjusting for the level of risk taken. A positive alpha suggests that a portfolio has delivered a superior return given the risk taken.

Initial public offering (IPO) is when shares in a private company are offered to the public for the first time.

Fiscal stimulus is an increase in government spending and/or a reduction in taxes.