Neuberger Berman has launched a fund to invest in technologies and solutions along the climate technology curve.
The Neuberger Berman Climate Innovation fund will maintain 30 to 60 global equity holdings.
It will focus on the key enablers and beneficiaries of climate innovation, by combining fundamental analysis with ESG investing.
The fund builds on thematic equity investing that spans themes ranging from next-generation mobility to the space economy.
Designated as Article 8 under the EU Sustainable Finance Disclosure Regulation, the fund will be benchmarked against the MSCI All-Country World Index.
It will be run by New York-based portfolio managers Evelyn Chow and Charlie Lim, who have a two-year track record in the strategy.
They will be backed by Neuberger Berman’s global equity research team of more than 49 investment professionals, as well as the firm’s data science and ESG teams.
Chow said: “Behavioral changes will only get us so far. We see a €90trn funding gap from now through 2050 to address climate change. According to the International Energy Agency, over 90% of the emissions reduction required to reach net zero will stem from the proliferation of low-carbon technologies.”
Lim added: “As such, we need to triple the level of annual investment taking place to combat climate change, which is driving the emergence of a new, historic capex cycle. Investing in climate innovation offers both a secular growth opportunity and a boon to society.”
Sarah Peasey, head of Europe ESG investing at Neuberger Berman, said: “Our clients are increasingly cognizant of the risks and opportunities that exist around climate change and the broader energy transition, while also recognizing that this can affect all asset classes, across public and private companies in their portfolios.
“As technology and policy converge to support climate innovation, this theme offers compelling opportunities for investors by directing capital to companies developing the most effective technologies while also allowing them to participate in a more sustainable society.”