At Brightwell, we understand the challenges that pension schemes face in assessing the potential impact of climate change on investment returns and integrating sustainable investment into their investment processes.
Investments may potentially be exposed to the physical risks of climate change and to the risk that the transition to a low carbon economy will make certain businesses unviable.
Potential to generate higher returns by investing in companies with robust transition plans
Making investments that will aid the low-carbon transition can deliver potentially higher and more sustainable returns. We also see the potential for generating higher returns by investing in companies which have robust plans to transition to materially-lower or zero emissions over time.
In some cases, pension schemes are dependent on ongoing pension contributions from their scheme sponsor. If the sponsor is negatively exposed to, or impacted by climate change, this could threaten its ability to contribute to the scheme’s funding. This places more pressure on funding activities.
We can help clients set objectives for reducing emissions in their portfolios through undertaking carbon footprint assessments and setting short, medium and long-term goals in line with their investment and funding objectives.
By considering climate risk as part of an integrated investment process, we seek to understand each fund manager’s approach and capability in assessing climate change; this is typically the main vehicle through which clients will achieve any net zero ambition.
“We believe investing sustainably supports long-term value, reduces risk and contributes towards better outcomes for our members.”Otto Thoresen | Chair, BTPS
Read more about the work Brightwell has done for BTPS in the Scheme’s sustainable investment and stewardship report which can be found below.
BTPS Annual Report and Accounts
At Brightwell, we firmly believe that integrating sustainability into the investment process contributes to better investment outcomes through long-term value creation and better management of…Take me there – “Sustainable Investment”
At Brightwell, our objective is to provide predictable outcomes for clients. We aim to narrow the range of outcomes by optimising our clients’ portfolios to…Take me there – “Investment Philosophy”
We believe that we are uniquely positioned to deliver a client’s required outcomes. By combining our investment philosophy and investment approach with the experience of…Take me there – “Investment Approach”