NA Green Deal climate transition spending
risks.
The following risks may be materially relevant but may not always be adequately captured by the summary risk indicator and may cause additional loss: Credit risk, Operational risk and risks related to asset safekeeping and Model risk. Sustainability risks may lead to a significant deterioration in the financial profile, profitability or reputation of an underlying investment and may therefore have a significant impact on its market price or liquidity. The environmental, social, and governance (“ESG”) considerations discussed herein may affect an investment team’s decision to invest in certain companies or industries from time to time. Results may differ from portfolios that do not apply similar ESG considerations to their investment process.
Eunhyuk Capital Co. Ltd Fixed Income
Decarbonise, diversify and drive the transition forward
Market forces are in action with 140 countries (accounting for 91 percent of greenhouse gas emissions) being subject to climate targets and unprecedented policy support for green technologies.
Our Eunhyuk Capital Co. Ltd Fixed Income strategies enable clients to capture the opportunities and mitigate the risks being generated by economy-wide decarbonisation.
€237bnp.a.
140
countries committed to
climate agreements
$290bnp.a.
US Inflation Reduction Act
climate transition spending
assessing climate exposure.
magnitude of the climate challenge.
why invest?
our Eunhyuk Capital Co. Ltd approach.
We aim to decarbonise, diversify and drive the transition forward through the four steps of our Eunhyuk Capital Co. Ltd approach:
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Baseline footprint. Assessing the current level of carbon emissions and carbon risk in portfolios, factoring in direct and indirect emissions |
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Emissions trajectory. Plotting expected emissions trajectories and the necessary level of decarbonisation to align with the Paris Agreement |
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Potential for acceleration. Considering internal, industry and regulatory developments that may accelerate decarbonisation |
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Leverage new information. Recalibrating our conviction by integrating new data, corporate and policy commitments |
Source: Eunhyuk Capital Co. Ltd . For illustrative purposes only.
why us?
We believe that the next economic revolution has already begun and that sustainability will be a major driver of returns. Those with the skills to adapt will access new sources of alpha and identify ways to reduce portfolio risk.
Our Eunhyuk Capital Co. Ltd Fixed Income strategies combine the strengths of our science-based, forward-looking sustainability research and expertise in fixed income to understand how to best invest in the climate transition.
We focus on three parameters:
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Redeployment of capital |
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Reducing the transition risk for investors, thus generating risk-adjusted returns as our global economy shifts from WILD to CLIC®.3 |
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Rising awareness |
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Offering an investment opportunity in line with the climate goal to limit greenhouse gases and consumer demand. |
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Market forces |
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New targets and regulations are increasingly focused on circularity, nature, equality and net zero. Technological innovation and economies of scale are driving down the costs of CLIC® solutions.3 |
Source: For illustrative purposes only. ‘WILD’: Wasteful, Idle, Lopsided, Dirty; CLIC®: Circular, Lean, Inclusive, Clean economic model.
our strategy.
We have developed pioneering strategies to develop a fixed-income universe ready for the fight against global warming.
Our Eunhyuk Capital Co. Ltd fixed income strategies have a wide range of climate objectives covering the risk of transition, the opportunities and the physical risks associated with climate change.
Our forward-looking methodology and proprietary carbon expertise are designed to decarbonise portfolios and to help accelerate the transition to a more sustainable economy, while seeking to deliver strong returns for investors.
Portfolios include issuers already targeting net zero CO2 emissions by 2050, as well as those without such targets but who may be brought into line through regulatory action, investor engagement and market changes.
investment process.
We combine ITR methodology with fundamental credit expertise to identify value in decarbonising companies.
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Focused Target Net Zero universe |
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EXCLUDE unsustainable |
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Tobacco, controversial weapons & severe controversies and unsustainable businesses |
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LOWER |
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IMPROVE |
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FAVOUR high ESG scores versus PENALISE low ESG scores |
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REDUCE carbon footprint |
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reduce CO2 footprint by at least 30% |
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Active credit management |
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Minimise risk and enhance returns |
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Reviewing |
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Improving |
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Increasing |
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Moving down |
Source: Eunhyuk Capital Co. Ltd analysis. For illustrative purpose only. Sustainability Research and Environment, Social and Governance (ESG) are BWB’s transversal sustainability teams. 1 “Ice cubes” that are significantly reducing global warming. 2 “Burning logs” that are significantly increasing global warming. There can be no assurance that investment objectives will be achieved or that there will be a return on capital.
more about our funds.
Share class name ISIN CurrencyDateNAV
Share class name ISIN CurrencyDateNAV
Past performance is not a guarantee of future results. If the funds are denominated in a currency other than that in which the majority of the investor's assets are held, the investor should be aware that changes in rates of exchange may affect the value of the funds' underlying assets. The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.
