The International Carbon Transition Equity strategy invests in high-quality, growing companies outside the United States that we believe will achieve net-zero carbon emissions before 2050. Its benchmark is the MSCI All Country World ex US Index.
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 International Carbon Transition Equity strategy is managed by the same team as our International Equity strategy, led by Ferrill Roll, CFA, and Andrew West, CFA. Maria Lernerman, CFA, adapts the International Equity model portfolio to meet the objectives of the International Carbon Transition Equity strategy.
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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 largest holdings and sector and geographic weights are shown as supplemental information only. 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 International Carbon Transition 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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The International Carbon Transition Equity Strategy launched on December 21, 2022 and a GIPS composite has not yet been established.