Strategic Investor Engagement: Driving Stewardship for a Net Zero Future
To accelerate net zero objectives, investors are well placed to leverage their voices as asset owners through strategies for deeper engagement and stewardship.
Sustainable & Impact Investing
Is Now a Good Time to Invest in the Energy Transition?
Yes, the transition to a low-carbon economy is producing a myriad of productive ways to put capital to work.
VantagePoint: Investing in a Low-Carbon Future
The energy transition involves a complex and dynamic set of changes in the way we do just about everything. While significant progress has been made in some quarters, considerable capital will be needed to fund the massive investment required over coming decades. We expect investors with a deliberate and thoughtful plan to invest in the transition across the risk/reward spectrum will be rewarded.
A Social & Environmental Equity Investing Framework for Better Real-World Outcomes
Investing can often feel like steering a ship through stormy seas, traversing risks seen and unseen. Adopting a more disciplined approach to investing for social and environmental equity can help investors minimize portfolio risk and maximize impact, even during flagging markets. In this paper, we review the momentum experienced in sustainable and impact investing and the historical relationship between global recessions and inequality. We then explain the rationale for staying the course during turbulent times, and introduce a framework designed to help investors produce better financial and impact outcomes in any market cycle.
Climate Tech’s Evolution: The Maturation to a Competitive, Returns-Focused Thematic Investment Sector
Climate tech has gained popularity among investors in recent years, but those familiar with the space recognize it as an evolution from clean tech solutions developed in the 2000s. In this paper, we explore the development of this growing investment theme, look at its evolution into a financially compelling investment opportunity, and discuss how investors can best take advantage of this opportunity.
Climate Solutions Investing: Your Toolbox for Building a Diversified Investment Portfolio
Investors should use the entire investment toolbox to build diversified exposure to climate solutions.
From Policy to Implementation: A Net Zero Playbook for Investors
While climate awareness is essential for all investors, others seek to be more ambitious by adopting a net zero goal for their portfolios. This paper explains the rationale for doing so and outlines an approach for target setting and implementation. A net zero policy focuses on decarbonizing the real economy. Investors have two powerful levers to do this: (1) stewardship and engagement; and (2) climate solution investments.
The Work of a Lifetime: Spend-Down Funds
A growing number of institutions and families are choosing to spend down assets over a limited time, rather than investing in perpetuity. There are valid arguments for—and against—using a spend-down approach to achieve philanthropic and investment goals. This paper provides historical context for spend-down funds, considers nuances for achieving good governance, and suggests an approach for dynamic asset allocation strategy, with case studies as illustrations.
Sustainable and Impact Investing 2022: Insights and Perspectives
In our 2022 Sustainable and Impact Investing Survey, we reached out to Cambridge Associates clients for insights into how investors are thinking about sustainable and impact investing, as well as to identify changes in the field over the past two years and to understand possible future trends. Of the 144 clients who responded, 93 reported engaging in sustainable and impact investing, and this chart book explores trends in the investment structure, implementation strategies, and governance and measurement of sustainable and impact investing.
2023 Outlook: Sustainability & Impact
We expect meaningful shifts in net zero and other sustainable and impact strategies toward more impactful implementation approaches. In line with this, we expect allocations to diverse managers to rise, as greater numbers of investors embrace stated investment policy objectives.