A new investment fund focusing on the climate, seeks to help build the world of tomorrow, says Aaron Klee, General Manager of Investment Management at KiwiSaver and managed funds provider AMP. The AMP Global Climate Fund, which will become a part of AMP’s investment portfolio in 2024, will seek to provide capital to support solutions for climate change with the aim of helping the world to decarbonise and get to a net-zero emissions outcome.
“Sustainability can’t just be thought about or talked about – you’ve got to walk the talk and help where you can.” says Klee.
The new climate fund is a continuation of AMP’s changes to its investment philosophy in 2021, the result of extensive customer research to identify what was important to consumers about how their KiwiSaver and other savings and investments were managed.
AMP’s approach to sustainable investing is based on a framework of four pillars, Klee explains. “The first is ‘avoid the bad’, which means we will avoid sectors, such as the fossil fuel industry, that are involved in activities we view as harmful. The second is ‘support the good’, so we can lean more into companies that are producing better outcomes for the environment and society. The third is ‘reduce our carbon footprint’, which is about the journey towards decarbonisation, working towards a net-zero outcome for the planet. And the fourth is ‘advocate for change’ – active engagement with companies to deliver better outcomes for shareholders, investors and the world - including the climate.”
AMP is the first New Zealand financial services company to commit to setting emissions reduction targets to meet the Science Based Targets initiative (SBTi). It is also committed to transparency by publishing its portfolios’ holdings, exclusions criteria and detailed methodology on its website for customers to see. It also periodically publishes its progress on all its key metrics and targets.
“It’s about being clear on what you do and how you do it, and being able to show to customers that what’s inside the tin is what’s on the label,” says Klee. “That’s very important for us.”
Klee says the new Global Climate Fund will become part of all AMP’s diversified funds in the new year. At this stage, the fund’s main investment opportunities are in renewable energy. “We need to own more of what the world wants and less of what it doesn’t want. The world doesn’t want oil and coal. But it does want renewables, and it wants all of these new technologies to help to decarbonise. Getting ahead of that curve makes good business sense.”
Livvy Mortimer, Sustainable Investment Analyst at AMP, adds: “For some of our customers, retirement is a long time away, and we want them to have a healthy planet when they’re ready to enjoy their savings in retirement.”
No money is being sought for AMP’s Global Climate Fund and no one can apply to invest in it. When launched, the fund will be a wholesale fund that will be invested in by other AMP funds. Any launch of the fund will be done in accordance with all applicable legal requirements.
Visit AMP to find out more information about their KiwiSaver and managed fund options.