Robeco has announced its interim targets and strategy to reach net zero emissions by 2050. Specifically, it aims to decarbonize its investments 30% by 2025 and 50% by 2030. This encompasses all emissions associated with business travel, electricity, heating and other business activities.
The company’s roadmap to net zero emissions by 2050 is called “Navigating the climate transition” and will be updated at least every five years. Its goal is to accelerate the transition by investing in companies it believes will thrive in it and by engaging with those that do not move “fast enough”.
This means Robeco will step up its active ownership activities through voting and engagement with the top 200 emitters in its investment universe and focus on engaging on climate change with 55 companies that are responsible for 20% of portfolio emissions. Additionally, it will intensify its dialogues with sovereign bond issuers and together with other investors, call for climate action by countries as governments play a vital role in the transition towards net zero.
“Our vision is that safeguarding economic, environmental and social assets is a prerequisite for a healthy economy and the generation of attractive returns in the future. Working in partnership with our clients, Robeco aspires to take a leading role in contributing to a net zero economy, create better and long-term risk-adjusted returns, and look after the world we live in. The low-carbon transition is not only a moral imperative, but also the prime investment opportunity of our generation”, said Victor Verberk, CIO Fixed Income and Sustainability.
Lastly, Lucian Peppelenbos, Climate Strategist at Robeco, pointed out that the biggest risk of climate change is inaction. “Our role as investors is to finance the transition and to use our leverage as shareholders and bondholders to accelerate it. A net zero economy can only be achieved if we all work together and everyone plays their part: investors, trade and industry, governments, and consumers. So let us take every opportunity to act now”, he concluded.