Climate
Action
Portfolios

Invest to support the transition to a net zero economy

The Climate Action portfolios are managed with a dual mandate: to achieve long-term capital growth by investing in companies that show climate change leadership.

The EQ Climate Action portfolios offer a diversified portfolio for those that see a significant opportunity in aligning investments to a low carbon world, and risks to not doing so.

*Comparisons are made against the MSCI ACWI IMI Index. Data source: MSCI,
EQ Investors, May 2024. The carbon footprint calculation is based on CO2 equivalent
emissions per £1m invested using the “Financed carbon emissions method” and
focusing on the equity portion of the portfolio.

Low carbon investing

We measure the carbon footprint of our investments, and measure this against a benchmark. As the climate crisis becomes more acute, today’s low carbon companies will be industry leaders and offer protection against regulatory risks.

Our carbon calculator shows how our portfolio carbon footprints compare to the index:

Carbon calculator

Solution focused

Companies that offer products and services that help others to reduce their emissions are an important part of the solution. These are companies in a position of strong demand with proven business models that are set to grow.

Actively engaged

Ultimately, every company needs a net zero strategy. As investors, we believe in engaging for change, so we also invest in profitable companies who may not be low carbon today, but where we can use our influence to accelerate change.

Invest for both financial returns and to support the transition to a net-zero economy

Fully managed: eight risk-rated profiles, globally diversified across asset classes

Avoids armaments, fossil fuel extraction and production, gambling, pornography, thermal coal, tobacco

Portfolio management fee: 0.32%—0.18% (excluding VAT) based on assets under management

Available on platform for ISAs, SIPPs and GIAs

Hybrid portfolios keep costs low – underlying fund charges: ~0.5%

What’s in the portfolios?

Low carbon leaders

Low carbon leaders have already reduced their carbon emissions by at least 33% versus their peers. These companies are industry leaders with advanced climate risk management processes already built into their business models, operations, and supply chains.

Climate solutions

The coming decades will see huge demand for companies that are helping to tackle the climate crisis. Companies whose products reduce carbon emissions across a wide range of industries, and green bonds that are being issued to directly finance the climate transition are positioned to grow strongly.

Transition companies

The global economy depends on carbon-intensive sectors to meet real human needs. To transition to a low carbon economy, we need to decarbonise these sectors.

We invest in strongly profitable businesses with credible, science-based plans to reduce their emissions, as well as selected companies where our managers see an opportunity to engage for change.

Independent verification by the Science Based Targets initiative offers a reliable way to judge whether businesses are serious about reducing their emissions over the long term.