Low carbon – some investors may tilt their portfolios to avoid high emitters in an attempt to shelter themselves from some of the financial risk of climate change.
The impact of low-carbon investing is similar to divestment but it means the pension fund can still have a seat at the table for engagement purposes. Pension funds should seek to engage collaboratively where possible, to maximise their influence.
Read our other definitions
A for Additionality
B for Blended finance
C for Concessionary
D for Double materiality
E for ESG
F for Fiduciary duty
G for Green bonds
H for Hydrogen
I for Intentionality
J for Just transition
K for Key performance indicators
M for Measurement
N for Natural capital
O for Outcomes
P for Paris Agreement
Q for Qualitative Impact Assessment Protocol
R for Responsible investment
S for Sustainable development goals
T for Triple bottom line
U for Underserved communities
V for Vocational training
W for Water access
X for Xeriscaping
Y for Youth empowerment
Z for Zero-waste strategy