When it comes to sustainable investing in fixed income, the same rigorous approach needs to be employed in relation to outcomes such as addressing the climate crisis. A new study shows that a leading indicator of a company’s success to decarbonise is whether or not they have set rigorous science-based targets (SBTs) for emissions reduction.
In this piece, Mitch Reznick, CFA, Head of Research and Sustainable Fixed Income, and Bertie Nicholson, ESG and Engagement Associate, discuss the power of SBTs as an input to our Climate Change Impact scores (CCIs) and investment decision making.