Global Paris-Aligned Equity

The Global Paris-Aligned Equity strategy invests in high-quality, growing companies worldwide that we believe have a viable pathway to achieve net zero greenhouse gas emissions by 2050. Its benchmark is the MSCI All Country World Index.

Strategy Overview

We invest in high-quality, growing companies outside the United States that Harding Loevner believes have a viable pathway to achieve net-zero greenhouse gas emissions by 2050. The strategy excludes companies holding fossil fuel reserves or deriving significant revenues from fossil fuel-related activities. Harding Loevner will engage with the company managements of portfolio holdings to ensure demonstrative progress toward reducing emissions and cast proxy votes with a focus on the efficacy of a company’s climate policies. We may disinvest from a company that does not demonstrate progress toward net zero, or that does not engage with us in respect to the reduction of carbon emissions.

The Global Paris-Aligned Equity strategy is managed by the same team as our Global Equity strategy, led by Peter Baughan, CFA, and Jingyi Li. Scott Crawshaw, a portfolio manager for Harding Loevner’s Global Equity strategy, adapts the Global Equity model portfolio to meet the objectives of the Global Paris-Aligned Equity strategy. 

The 2015 Paris Agreement aims to limit the rise of average global temperatures to not more than 2.0—or, preferably, 1.5—degrees Celsius above pre-industrial levels; it is estimated that, to achieve this goal, the world’s net global greenhouse gas emissions must be eliminated by 2050.

Recent Reports

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Mutual Funds

For US institutions and individuals

UCITS Funds

For non-US investors

Collective Investment Trusts

For retirement plans

Portfolio Managers

Peter Baughan, CFA

Global Co-lead

Scott Crawshaw

Global Paris-Aligned PM

Jingyi Li

Global Co-lead

Composite Performance (%)

Returns are annualized for periods greater than one year.

Portfolio

The strategy invests in securities of companies that Harding Loevner believes will achieve net-zero GHG emissions by 2050, which may limit the type and number of investment opportunities available to the strategy. As a result, the strategy may underperform other strategies that do not limit investment in companies that do not demonstrate a viable pathway to achieve net-zero GHG emissions neutral status by 2050.

The strategy’s ESG screening process may affect exposures to certain companies or industries and cause the strategy to forego certain investment opportunities. Consideration of ESG factors may significantly impact performance. The relative impact of ESG factors on performance may vary across industries and regions. The evaluation of companies for ESG screening is dependent on the timely and accurate reporting of ESG data by the companies.

The Composite performance shown is preliminary. For comparison purposes the Composite return is measured against the the MSCI All Country World Total Return Index (Gross). Harding Loevner LP is an investment adviser registered with the Securities and Exchange Commission. Harding Loevner claims compliance with the Global Investment Performance Standards (GIPS®). Harding Loevner has been independently verified for the period November 1, 1989 through September 30, 2022. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. The verification and performance examination reports are available upon request. Performance data quoted represents past performance; past performance does not guarantee future results. Returns are presented both gross and net of management fees and include the reinvestment of all income. Net returns are calculated using actual fees. The US dollar is the currency used to express performance. Complete information on the construction and historical record of the Global Paris-Aligned Equity Composite is available here. The firm maintains a complete list of composite descriptions, a list of limited distribution pooled fund descriptions, and a list of broad distribution pooled funds, which are available upon request.

GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

The largest holdings and sector and geographic weights are shown as supplemental information only and complement the fully compliant Global Paris-Aligned Equity Composite GIPS presentation. The portfolios are actively managed therefore holdings shown may not be current. They should not be considered recommendations to buy or sell any security. It should not be assumed that investment in the securities identified has been or will be profitable. A complete list of holdings for this quarter is available for Global Paris-Aligned Equity here. To request a complete list of holdings since inception, please contact Harding Loevner.

MSCI Inc. and S&P do not make any express or implied warranties or representations and shall have no liability whatsoever with respect to any GICS data contained herein.

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