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    Insight’s Climate Change Report 2024

    Insight’s Climate Change Report 2024

    02 July 2024 Responsible investment

    Insight seeks to prioritise the certainty of meeting clients' objectives above all else, rather than maximising returns and minimising volatility.

    Climate change requires our attention as we seek to navigate the issues to fulfil our fiduciary obligation to our clients. It is unique in terms of its complexity, uncertainty and scope for material value creation and destruction. To protect our clients' interests we need to consider how climate change could impact their investments, and to ensure portfolios remain resilient. However, stating the exact quantum and timings of the potential impacts with any accuracy remains a huge challenge.

    In 2023 we made progress in a number of relevant areas. We have:

    • demonstrated progress against interim net-zero goals (which apply to a specified portion of UK-managed assets), on metrics such as financed emissions disclosure, target-setting and reductions;
    • evolved two European-domiciled strategies in our Responsible Horizons range to align them with the transition to net zero, encompassing historical emissions performance and forward-looking targets;
    • supported the development of consistent industry standards for the measurement of emissions and net-zero alignment in important asset classes such as sovereign bonds, collateralised loan obligations (CLOs) and impact bonds;
    • engaged with counterparty financial institutions, seeking to understand their plans to transition to a low-carbon economy and manage climate-related risks within their lending activities; and
    • continued dialogue on net zero with the UK government and participated in the UN-supported PRI's collaborative engagement pilot with Australia.

    The report is aligned to Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

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