Investment group Trium Capital is launching a fund investing in companies in sectors with high emissions, to reap the financial benefits as these companies transition to lower carbon alternatives.
The Trium ESG Emissions Impact Fund invests in companies in high emitting sectors such as energy, materials, utilities and industrials, focussing on companies that are seeking to embrace innovative strategies as part of the energy transition process.
The fund group will actively engage with these companies to influence and steer decisions, as they transition to lower carbon alternatives. The fund is targeting annual returns of 8%.
“To start thinking differently, you have to start from scratch,” says Joe Mares, a fund manager at Trium.
“Most ESG strategies are backward-looking – concentrating on historic ESG metrics. We are forward-looking, actively engaging with companies that demonstrate potential for change. To fix a problem, you need to focus directly on companies that are regarded as part of the problem, but have the ability to become part of the solution.”
Mares was previously an energy analyst at Morgan Stanley, a commodities equity analyst at GLG Partners and worked at Moore Capital. He joined Trium Capital from Société Générale and had previously been running a global energy and resources long/short equity book.
“Joe’s approach focuses directly on environmental impact,” explained Donald Pepper, co-head of Trium Capital.
“He is already having success engaging with management to increase disclosure, promote best practices and encourage environmental investments. Importantly, while delivering measurable ESG objectives, Joe’s investment approach concurrently expects to deliver strong risk-adjusted returns.
“We are seeing strong demand from investors as they increasingly integrate ESG into alternatives portfolios.”