Where to with net zero investing | Insight Investment

Claire Bews, Integrated Solutions Credit Portfolio Manager

Key takeaways:

• Many governments, corporates and investors have put net-zero targets in place in recent years, but attitudes to net zero are shifting rapidly, with some governments and corporates leaving high-profile net-zero initiatives.
• Greater pragmatism and flexibility are therefore necessary for investors with net-zero targets. Some portfolios have been able to reduce carbon intensity without compromising on risk/return in recent years, but this is unlikely to be so easily achievable in future.
• An emphasis on forward-looking assessments, rather than purely current metrics, will be needed for a portfolio to stay on a path to net zero.

Please note: We are aware of the announcement by the Net Zero Asset Manager’s Alliance (NZAM) on 13 January 2025 and we are obviously not in a position to comment until their review reaches its conclusion. Insight’s mission is to support our clients in meeting their investment objectives and achieving their desired outcomes. Our investment processes, policies and the investment approaches that we apply in specific circumstances will continue to be anchored in delivering against the objectives set by our clients regardless of the outcome of NZAM’s review.