Twelve Capital, the Zurich headquartered investment manager with a focus on insurance-linked securities (ILS), insurance and reinsurance linked investments, has had its Climate Transition Equity Strategy classified under Article 9 of SFDR.
The strategy focuses on the environmental aspects of climate sustainability, while also considering social and governance aspects.
It is employed to operate an investment fund that allocates to worldwide equities, primarily in insurance or reinsurance companies, but it also invests in the equity of other financial and fintech companies.
The strategy seeks to support the transition of the insurance, financial and fintech industry to achieve the goal of a net zero economy.
Article 9 of the European Sustainable Finance Disclosure Regulation (SFDR) is described as being applicable to “a Fund that has sustainable investment as its objective or a reduction in carbon emissions as its objective.”
To achieve an Article 9 classification, good governance must be incorporated into the investment strategy, while investments must be considered under the “do no harm” principle.
Twelve Capital’s Climate Transition Equity strategy focused on the reallocation and technological enablement of financial capital from high carbon to low carbon activities.
Engaging with companies as to how they address both Transition and Physical risks and how they are reducing their own operational carbon emissions, Twelve Capital looks to identify the best-in-class, those companies making the biggest impacts.
Daniel King-Robinson, Head of Sustainable & Climate Investing at Twelve Capital commented, “Article 9 for us at Twelve Capital is not simply just a stamp of approval, but gives definition to sustainability in terms of our inhouse process and engagement, whilst also authenticating our strategic mission towards reducing direct and indirect carbon emissions.”
Urs Ramseier, Executive Chairman of Twelve Capital, added, “This is a significant achievement. Whilst promoting environmental characteristics and having adequate governance practices is core to our sustainable strategy, fine tuning our impact objectives adds an extra layer to this process, that aligns with the very essence of article 9 status.”