Impact @ Impax - Environmental Impact Report 2018

Founded in 1998, Impax is a specialist asset manager investing in the opportunities arising from the transition to a more sustainable global economy. We believe that:

  • Capital markets will be shaped profoundly by global sustainability challenges, including climate change, pollution, and essential investments in human capital, infrastructure, and resource efficiency.
  • Trends will drive growth for well-positioned companies and create risks for those unable or unwilling to adapt.

Whilst the primary objective of our strategies is to deliver strong risk-adjusted returns for investors, the style of our environmental markets also results in quantifiable environmental benefits.

In this, our fourth year of reporting on Environmental Impact, we expand the scope to include Impax’s Asia-Pacific strategy alongside our global Leaders and Specialists strategies. In response to the specific environmental challenges in the Asia-Pacific region we have introduced metrics related to avoidance of urban air pollution, a significant health risk for citizens of growing Asian cities (p5). We have also included the Impax Renewable Energy Infrastructure strategy which has developed a total of 550 MW of renewable electricity capacity in Europe since 2013 (p6).

Alongside environmental benefits, asset owners are increasingly interested in CO2 intensity in the context of future climate change scenarios. On page 7 the CO2 intensity of Impax’s strategies are compared against today’s economy as well as an economy operating within the scope of the Paris Climate Agreement. The target to limit global atmospheric warming to 2oC above pre-industrial levels is an ambitious goal. Following updated scientific advice this may be tightened to 1.5oC. In 2017 all of our strategies showed markedly lower CO2 intensity than both the current economy and a theoretical 2oC aligned scenario.

Impact measurement continues to evolve across asset classes and we appreciate ongoing feedback and engagement from the investment community and companies on our work to report in this area.