Environmental Solutions

The Environmental Solutions strategy targets high returns and long-term capital growth by investing in a portfolio of global equity and equity-related securities. It is a pure-play environmental strategy, aiming to have at least 80% of invested capital in companies where environmental solutions account for >50% of revenues or profits. It also seeks to have an even greater impact through donations to environmental charities. 


Environmental Solutions Strategy

Please watch the latest in our TT Talks series of webinars in which Co-Portfolio Managers Harry Thomas and Andrew Raikes discuss the key aspects of the Environmental Solutions strategy with Investment Strategist Mike Jennings. 

The strategy aims to drive capital towards companies that are delivering solutions to the problems of climate change and ecosystem destruction around the world. It also has a direct impact via donations to environmental charities. 

We believe that the environmental thematic will be a key structural winner over the next two decades and therefore expect the Environmental Solutions strategy to significantly outperform global equity markets over the long-term, while adhering to certain environmental investment criteria.

The investment process is based on rigorous fundamental stock selection within an environmentally driven top-down framework. Portfolio construction is the synthesis of idea generation, conviction and risk management. The strategy will typically hold between 30 and 40 stocks, and will have a very high active share.

The following aspects of our investment process provide an edge and set the TT proposition apart from the competition:

  • High hurdle for inclusion. We demand the highest level of environmental standards from all our portfolio holdings. The strategy aims to have at least 80% of invested capital in companies where the majority of revenues or profits stem from tackling a specific environmental problem, and all holdings must make material positive impacts on the environment through their activities. We believe that our definition of ‘environmental solutions’ is significantly more stringent than many of our peers. 
  • Our Research Advisory Board consists of leading environmental policymakers and experts such as Dr Ma Jun, a key green policy adviser in China and Co-Chair of the G20 Green Finance Study Group. The purpose of the board is to challenge, inform, advise and connect our investment team, providing an additional layer of scrutiny and insight.  
  • Our innovative fee structure is designed to provide even greater impact, with one-third of our management fees being given to several carefully selected environmental charities.  
  • This is a genuinely global approach. Whereas many of our competitors have portfolios that are dominated by companies in Europe and the US, our world-class team of analysts have many years of experience researching companies across the globe, including in Emerging Markets, where TT has a market leading strategy. Consequently, our portfolio contains many exciting companies in Asia and Latin America.   

Harry Thomas, Co-Portfolio Manager of the TT Environmental Solutions strategy, recently spoke at the Sustainable Investment Forum Europe 2021. Click here to hear his thoughts on topics such as how investors can help resolve the biodiversity crisis, the key role Emerging Markets can play in the environmental transition, why we believe the environmental equities asset class is so compelling from an investment perspective, and what we see as the next stage of evolution for environmental investing.

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