How is Thematics Asset Management committed to climate-focused considerations? How does it manage climate risks? What are its ambitions towards supporting the transition to a low-carbon economy?

Thematics Asset Management’s first report on Climate Strategy highlights its commitment to continuously innovate and advance its investment strategies to protect its clients investments, while generating meaning through contributing towards green growth and transition.

Commitment to invest responsibly

As an asset management organisation with a pure thematic focus on the global listed equity markets, Thematics AM is committed to supporting efforts to mitigate against the effects of climate change through (1) the investment products that it offers, (2) how it invests, and (3) via engagement with the industry and investment community.

Climate disclosure framework

In alignment with the recommended voluntary disclosures of the TCFD, as well as the mandated reporting as outlined in the French Article 173 – VI of the Energy Transition for Green Growth law, Thematics AM’s strategy covers the 4 core areas of disclosure: Governance, Strategy, Risk Management, and Metrics and Targets.

Governance

Portfolio managers own the implementation of climate policies at the individual thematic fund level. They ensure that all climate-related strategies applicable at each stage of the investment process is followed, from exclusion to ESG & climate integration in the due diligence, engagement, and voting.

Thematics AM Climate Strategy

  • Enabling climate transition and resilience through investing in positive themes
  • Minimising adverse impacts through DNSH* and exclusion
  • Identifying and managing ESG and climate risks and opportunities
  • Continued performance improvement and transparency

Risk Management

Thematics AM’s climate risk strategy is integrated into its global Responsible Investment framework and embedded across the three phases of the investment process: Define, Select and Act.

Metrics and Targets

Evaluation of Thematics AM’s investment strategies’ performance across different sustainable development themes, in particular those relating to climate transition and environmental protection, indicates it sustainable outcome contributions. Using third-party independent scoring1, it shows that more than half of its assets produce solutions that are positively contributing to various environmental goals, including climate change mitigation and sustainable use of energy. Majority of these assets are building solutions around electric and hybrid vehicles, energy-efficient data centres and other office automation solutions, smart consumer devices, as well as key equipment and services to the renewable energy sector.

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* Do No Significant Harm

1 Scores based on ISS Sustainable Development Goals Research

This article has been provided for information purposes only to professional clients as defined in the MiFID Directive. It must not be used for retail investors. The provision of this material or reference to specific sectors or markets in this article does not constitute investment advice or a recommendation or an offer to buy or sell any security. Investors should consider the investment objectives, risks and expenses of any investment carefully before investing. Views expressed in this article as of the date indicated are subject to change and there can be no assurance that developments will transpire as may be forecasted in this article.

THEMATICS ASSET MANAGEMENT - An affiliate of Natixis Investment Managers. A French SAS (Société par Actions Simplifiée) with a share capital of €150 000. RCS Paris: 843 939 992. Regulated by the AMF (Autorité des Marchés Financiers), under no GP 19000027. 43, avenue Pierre Mendès France 75013 Paris, France.

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