Preparing Buy & Maintain Portfolios For Net Zero

Good progress but the hard work starts now

We review the progress that has been made by a Buy & Maintain portfolio towards Net Zero and discuss how further progress can be achieved.

A couple of years ago we wrote an article about preparing Buy & Maintain (B&M) portfolios for Net Zero. That used portfolio statistics from a B&M fund many of our clients hold to demonstrate the pitfalls and opportunities in making an (increasingly larger) part of their portfolio aligned with Net Zero targets.

This article reviews the progress the portfolio has made towards Net Zero and discusses how further progress can be achieved. Engagement remains key to success.

Important fund changes

While the fund objectives always considered ESG in a broad sense, the manager is now explicitly required to manage the portfolio in line with the principles of the Net Zero Investment Framework, where this does not conflict with the other objectives of the portfolio.