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    Insight’s Climate Change Report 2023

    Insight’s Climate Change Report 2023

    29 June 2023 Responsible investment

    Insight has built a business by looking at investing in a different way. Rather than a traditional focus on maximising returns and minimising volatility, we have always sought to prioritise the certainty of meeting clients’ objectives above all else.

    Climate change presents an unambiguous challenge to delivering such outcomes. It is unique in terms of its complexity, pervasiveness and the level of deep uncertainty that it creates. It is likely to challenge how individuals spend, how governments rule and how, put simply, we live as a society.

    Mitigating and adapting to climate change will also reshape the foundations of the financial industry. The sheer quantity of capital, not to mention the regulatory architecture, required to support commitments being made by asset owners, asset managers and governments requires detailed consideration of how climate change will impact our clients (for whom we act as agents) and ourselves as a member of the asset management community.

    In this report, we set out how we are building the foundations of climate resilience for our clients and for our business and to illustrate the direction of travel, to ensure we can continue to help our clients pursue their specific objectives. Specific progress we have made includes:

    • Developing more sophisticated climate-related governance processes, including a new Climate Change Resilience Committee and firm-wide training on climate change.
    • Engaging with the highest-emitting corporates and counterparty financial institutions in our investment universe, seeking to understand their plans to transition to a low-carbon economy.
    • Helping our clients by developing forward-looking tools, including a Paris-aligned investment analysis framework, and using these tools to design better climate-aware portfolios.
    • Introducing new impact strategies in our Responsible Horizons range, designed to help contribute to climate mitigation and adaptation objectives in high-need sectors and geographies.
    • Understanding our current operational carbon footprint, and working to reduce its impact in collaboration with our parent company, The Bank of New York Mellon Corporation (BNY Mellon).
    • Contributing to the development of consistent industry approaches (for asset owners, managers and advisers) particularly in relation to fixed income, sovereign bonds and impact investing.

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

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