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Climate Change Podcasts


Expert thought-leaders share insights on the challenges, risks and opportunities of climate change

Episode 6: Developing a high-level framework to responsible investing

In this sixth episode of the Climate Change podcast series, John Teahan, Portfolio Manager at RWC partners talks to Sonja Laud, Chief Investment Officer at Legal and General Investment Management. In this episode, they discuss LGIM's leading work on climate issues, engagement, and resolutions.

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Developing a high-level framework to responsible investing

Influence Map ranked Legal and General Investment Management (LGIM) at the top of global asset managers for climate engagement and climate resolution votes, with a score 99% and a performance band of A+. In fact, these scores date back to 1980 and have always been a part of LGIM’s approach to minimum standards in responsible investing.

John Teahan, Portfolio Manager at RWC Partners interviews Sonja Laud, Chief Investment Officer at LGIM on LGIM’s leading work on climate issues. Said to have recorded an AuM of £1.6tn in 2020, LGIM has made it clear every engagement and every vote really matters.

As the former Head of Equity at Fidelity International, Sonja Laud and John Teahan worked together on portfolios and discuss how LGIM has made climate an important part of responsible investing, from embedding it into the firm’s culture, to acting on behalf of clients. 

The conversation focuses on the companies’ powerful strategies to influence and how LGIM' Stewardship and Investment teams operate. In practicing ESG Sonja share’s how it provides a positively holistic view of a company. By moving away from just looking at the P&L, balance sheet, and doing fundamental analysis as it’s always been done, ESG integration can add a broader perspective. 

Sonja says, ‘We’re doing this because, point one we feel we have a responsibility to address big societal issues. Point two, and maybe more importantly we believe that these issues do carry financial materiality, and that means you have to include them in your investment process in order to deliver attractive and relevant investment propositions to your clients.’

Listen to this podcast to hear from Sonja Laud on their leading the LGIM ESG strategies and high-level framework to responsible investing. 

 

Record date:15 October 2021

 

Episode 5: The shift to renewable energy and investor opportunities

In this fifth episode of the Climate Change podcast series, John Teahan, Portfolio Manager from RWC Partners, talks with Sean Maguire, Managing Director at Impax Asset Management about renewable energy in Europe and the opportunities for investors.

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The shift to renewable energy and investor opportunities

Renewable energy presents massive opportunity for investors, with the IEA estimating that on average there was £2 trillion spent annually over the last 5 years on investing in energy, rising to £5 trillion by 2030. 

Renewables are expected to take a leading role in replacing fossil fuels, providing two thirds of energy by 2050 according to the IEA new zero by 2050 scenario. To put this into context, renewables, including hydro, account for 11% of energy needs today. This energy transition poses a massive global challenge that will impact all parts of the economy, and for investors into the energy markets, this will influence returns significantly.  

Listen to this podcast with Sean Maguire, who has worked in the renewable energy sector for 15 years and has a unique insight into the development of the industry and a key understanding of the challenges it faces including technical, regulatory and investor return pressures. 
 

Record date: 22 July 2021

 

Episode 4: The fundamentals of climate science

In this fourth episode of the new Climate Change podcast series, Thomas Streater, CFA from the CFA UK Climate Change Content Working Group, talks with Dr. Sasha Turchyn, Geochemist at Cambridge University about the basics of climate science and the drivers behind climate change/greenhouse effects.

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The fundamentals of climate science

As an investment professional it’s important to gain an understanding of what is meant when talking about climate change and the benefits of shifting existing behaviours. In this podcast explores the basics to take a high-level view of the climate science and what it means for the industry as a whole. 

Climate models, whilst varied, are all pointing in the same direction… a global climate that is more volatile and unpredictable that will negatively influence the human race. The Paris Agreement  sets out the foundations to tackle this, with many individuals, companies and governments asking how they can achieve net-zero by 2050 or sooner. 

What can you do?

Record date: 26 February 2021

 

Episode 3: The green economy - Sizing the investment opportunity

In this third episode of the new Climate Change podcast series, Thomas Streater, CFA from the CFA UK Climate Change Content Working Group, talks with Lee Clements, Head of Sustainable Investment Solutions at FTSE Russell about the green economy and sustainable investing.  

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Whilst there is a lot of focus on mobilising climate finance in the direction of the green economy, a shortage of concrete data and definitions are causing a lack of awareness around the investment opportunities available. For years, green was loosely defined, based on concepts rather than a specific industrial system. This is where Lee Clements and FTSE Russell step in. 

Through the Green Revenues 2.0 data model, they have identified more than 3000 global companies that are participating in the green economy, equating to an estimate of $4 trillion worth of market cap or 5-6 percent of all listed global equities. FTSE Russell have developed a structure, measurement methodology and process to help truthfully size the growing green economy. 

Client interest has significantly grown, with investors starting to look beyond excluding risk areas such as coal mining or gas, and shifting their attention to growth opportunity areas, for instance renewable energy or electric vehicles. This interest has been further stimulated by regulations similar to the EU Taxonomy. 

Record date: 23 February 2021

 

Episode 2: Reducing food waste on an industrial scale

In this second episode of the new Climate Change podcast series, Mark Curtin, CEO at the Felix Project speaks with John Teahan, Value Investments Portfolio Manager at RWC Partners about reducing food waste through the distribution of surplus food and how the investment industry can support this work and improve the current landscape.

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Right now, millions of people in the UK regularly experience hunger. Yet tonnes of surplus fresh food is thrown away every day. Mark Curtin and his team at the Felix Project have set out to change this. 

The UN Sustainability Development Goals (SDGs) are looking to halve food waste by 2030, with the UK making significant progress. There is a growing awareness, from all types of investors, about the issue of food waste and the business benefits that can be realised when providing solutions to tackle it. 

Targeting investments in sustainable food companies and in businesses that can demonstrate innovation in resource efficiency and nutrition. Especially those who invest in technology that assist in reducing waste in their production, monitoring, packaging, storage, harvesting and distribution channels.

In simple terms, waste negatively impacts margins in any business, and reducing this waste will improve profitability and investor returnsWhat can those working in investment do to support this?

  1. Inform your clients about the benefits of reducing food waste within their business (increased profits margins/improved brand image/reduced carbon footprint)
  2. Align with your stakeholders who already want to tackle food waste, hunger and poverty
  3. Research existing investment products that target food waste and other sustainability issues, for instance the World Bank’s Sustainable Development Bonds
  4. Create new investment opportunities and innovative solutions to meet the demand
  5. Promote the work of food waste charities similar to the Felix Project
  6. Make a personal change within your business and take a moral stance

Record date: 23 March 2021

Episode 1: How Are Value Investors Adopting ESG Principles?

In this first episode of the new Climate Change podcast series, Thomas Streater, CFA from the CFA UK Climate Change Content Working Group, speaks with John Teahan, Value Investments Portfolio Manager at RWC Partners about climate change and value investing.

 

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A recent Professional Investor article, Asset managers still slow on climate change, revealed that a substantial number of asset managers are still struggling to engage with climate change challenges and research conducted by the CFA Institute shows that, of 305 respondents from across the investment industry, only 40% are currently incorporating climate change into the investment process, even though three-quarters of respondents feel that climate change is an important issue for investment management.

2020 - the boom year for ESG

This last year has seen phenomenal growth with ESG investing and there has been a renewed focus on these high-performing strategies. Bernstein estimates that £200bn flowed into ESG strategies in 2020, compared to £100bn being pulled from all active funds. Why was 2020 such a pivotal year for ESG investing?

A combination of factors has contributed to these successes, from the doubling of companies declaring net zero targets, increased regulation (EU Taxonomy, SFDR) and a societal recognition and shift towards environmental issues.  On top of this COVID-19 gave ESG an unexpected boost with the UK governments mantra of ‘Building Back Better’ cutting through with the general public and investors alike.

There has been a real wake up call for value investors to engage with ESG issues, to attract and win capital for their businesses and the companies they invest in. For Teahan and his organisation RWC Partners, it is not only about integrating ESG strategies into their portfolios, but it’s about going even further and becoming impact investors.

Record date: 9 April 2021