Paris-headquartered Comgest has launched a ‘fossil fuel-free’ emerging markets equity strategy with initial investor seeding of $250 million (€224 million).
The Growth Emerging Markets Plus fund, managed by a team of ESG and emerging markets specialists, was set up in response to client demand for portfolios applying “formal ethical exclusions”.
The strategy will adopt a “zero-tolerance” approach to fossil fuel extraction, reserves and power generation.
According to the firm, which manages $37 billion of assets, ESG integration throughout its investment processes has meant that all its portfolios have had no or very low exposure to areas such as coal, oil and gas, construction and materials.
What sets this latest strategy apart is the fact it will adopt formal exclusions regarding fossil fuel exposure, as well as adhere to the requirements of certain European ESG and socially responsible investment labels, including Belgium’s Towards Sustainability.
Companies involved in areas such as nuclear energy or uranium mining (with a 5% revenue threshold) will also be excluded.
The fund was seeded in January this year by the National Trust, the Joseph Rowntree Foundation, Guardian Media Group, and the Nesta Trust.
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