United StatesImpax is a specialist asset manager investing in the opportunities arising from the transition to a more sustainable economy. Across our strategies, we aim to build more resilient portfolios by managing risks, including climate-related risks. Such risks include material risks to companies with fossil fuel-related assets and activities, in the form of government intervention to regulate greenhouse gases, changes in consumer preferences, technological developments and other liabilities, like stranded asset risks, in addition to reputational and litigation risks.
To mitigate or eliminate such risks, all of our strategies have adopted a fossil fuel policy as described below.
Categories of fossil fuel companies under this policy include companies that Impax determines are:
- Deriving any revenues or profits from fossil fuel exploration and production1; or
- Deriving > 5% of revenues or profits from fossil fuel refining, processing, storage, transportation and distribution, as well as utility power generation2.
We will not invest in companies in the first category above as we believe they face significant climate transition risks. Nor will we invest in companies in the second category above, unless we have determined that they have credible plans for climate risk mitigation aligned with the transition to net zero.
1 Whether coal mining, or conventional oil and gas, or non-conventional sources such as shale gas.
2 The Impax Funds’ Fossil Fuel Policy does not apply to:
2 The Fossil Fuel Policy does not apply to:
- Companies with indirect exposure to fossil fuels such as automotives, transport, industrials and financials.
- For example, emerging market utility, storage or distribution companies, as these companies are providing transitional air quality solutions, e.g., replacing coal in regions where coal represents a high proportion of the energy mix in the grid system.