According to the U.S. National Oceanic and Atmospheric Administration, the 10 hottest years on record have all occurred since 2005, and the years of 2014-2020 have been the top seven hottest. Storms, floods, fires, and droughts are on the rise, as weather patterns become unpredictable. Globally, this reality is now accepted as fact, not hypothesis, and even the U.S. has once again joined the international community to work together to slow and eventually halt emissions causing this crisis. It is exciting to be part of this work, on a national basis, again!
While public policy is an important framework for the change that needs to happen, in order to more quickly reorient the world from our current, destructive path to a more sustainable one, much capital will need to be invested in realigning the world’s economies. While new business models are emerging, old ones need to either fade or evolve.
We are therefore pleased to announce our participation in the Net Zero Asset Managers Initiative. Along with other investors, we are formally pledging to align our portfolios with the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius. This is an important juncture in the longstanding work to drive carbon reductions in our economy. As we move into this new phase, the authenticity of commitments and follow through will be critical.
Trillium’s investment process has long sought to invest in companies addressing climate change. Through our Shareholder Advocacy, we have worked with many companies to reduce their climate impact, by pushing for policies, targets, reporting, and actions. This commitment recognizes the need to formally shift global investments, including ours from old business models to new ones.
Matt Patsky, CEO, Trillium Asset Management: “With this commitment, we are adding our voice to an important initiative which recognizes that the world is out of time. We believe that investing in companies that are mired in outdated ways of thinking, ignoring both climate risks and the opportunities of transition, exposes portfolios to unnecessary risks. And, as long-term, sustainability-oriented investors, we recognize that investor capital, such as we are entrusted to invest on behalf of our clients, needs to reward companies making the transition from the old world to the new, and avoid those that are not. Our climate demands it, and our clients deserve it.”
Over the coming months, we look forward to providing you with more information about our climate-focused investment approach, including our first TCFD report and climate action plan. In the meantime, Trillium is excited to join firms across the planet in doing our part in the race to meet the challenge of our time, by using our capital to slow greenhouse gas emissions.