ESG Leadership

Climate Impact Through Corporate Engagement

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Climate Impact Through Corporate Engagement

Two significant problems exist for investors who want to own a decarbonized or “clean” diversified credit portfolio:

  1. less than 20% of issuers report Scope 1 and 2 greenhouse gas emissions, and
  2. even fewer of those have set targets to reach a 2-degree warming scenario.

Because of this, it is virtually impossible to manage a portfolio fully aligned with the Paris Agreement. This creates an enormous challenge, but also an opportunity to pursue corporate engagement strategies to help companies in the high yield universe shape positive carbon outcomes. Event-driven credit, as an investment strategy, is well-positioned to engage and help high yield issuers reduce emissions and align with the Paris Agreement.

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Climate Impact Through Corporate Engagement