Industry Voice: The vital role of private assets in climate investing

The need for investment in order to tackle climate change is greater than ever as rising temperatures have worsened extreme weather events, destroyed lives and homes, and transformed natural habitats. To achieve the targets of the Paris Agreement, the World Bank indicates that climate financing must be counted in the trillions, not billions.

Jack Wasserman, Investment Director, Impact Strategies at Schroders Capital and Emily Pollock, Solutions Director at Schroders Capital share how private assets can help support positive climate solutions and how pension schemes can measure the impact of their investments.

Private assets play an important role in climate investing for three main reasons. Private investments are closer to the assets, have a longer timeframe for investment and can target the most impactful industries.

Pension funds represent around $54 trillion - a little over a third of the entire $154 trillion global asset management industry. The focus on ESG and the rise of private assets are likely to increase pension allocations to positive climate solutions in private markets which may have vital consequences in the real world. Wherever pensions direct their attention, change follows.

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This post is sponsored by Schroders Capital