Robeco has been awarded a GBP 75 million (EUR 87 million) mandate by the National Trust, Europe’s largest conservation charity, to be its partner in achieving its commitment to become carbon net zero by 2030.
Advised by global investment firm Cambridge Associates, National Trust have made this appointment to reflect the goal of aligning its investment strategy with its objective to mitigate climate change and protect the natural environment. This investment also represents seed assets for Robeco’s Climate Global Credits Fund. The fund invests in a global portfolio of diversified corporate bonds with explicit climate targets that contribute to the goals of the Paris Agreement.
Robeco’s Climate Global Credits strategy – the first global fixed income strategy to be fully compliant with the EU benchmark for Paris-aligned investments – starts with a 50% lower carbon footprint than the broader corporate bond market, and aims to decarbonise by 7% per year while outperforming its newly created Paris-aligned benchmark, the Solactive Paris Aligned Global Corporate Index, which was developed jointly with Robeco. Climate change considerations are fully integrated into the investment process and portfolio construction, with engagement carried out by Robeco’s Active Ownership team also being part of the strategy.
Katie Weber, Head of UK Institutional at Robeco said: “We are honoured to have been awarded this mandate by the National Trust, a partner that, like us, attaches great importance to safeguarding the environment. Robeco’s Climate Global Credits strategy provides investors with the opportunity to be at the forefront of the transition to a low-carbon economy, and for the National Trust, this investment will help it achieve its own goals to tackle the causes of climate change.”
Peter Vermeulen, the National Trust’s Chief Financial Officer said: “As Europe’s largest conservation charity, we have the responsibility to combat climate change, which poses the biggest threat to the places, nature and collections we care for. Given Robeco’s leading position in sustainable investing and long history and expertise in fixed income, we are delighted to provide seed capital to this innovative solution and we see Robeco as an ideal partner to help us achieve our commitment to becoming carbon net zero by 2030. We were also impressed with Robeco’s climate change engagement programme, targeting investee companies which fall behind in the transition to a low-carbon economy.”
Annachiara Marcandalli, European Head of Sustainable Investing at National Trust’s investment firm, Cambridge Associates, said: “We are proud to be working with a leader like National Trust which is setting ambitious objectives, such as striving to achieve carbon neutrality approximately 20 years sooner than most. Climate change is a material risk and competitive opportunity for institutional investors, and we see it as an integral part of portfolio construction. This new fixed income allocation continues the Trust’s progress in negative screening, whilst also proactively allocating to environmental solutions.”