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Aktia Asset Management: Investing into a Sustainable Future

Profitable investments and climate change are no longer separate agendas; asset managers are waking up to a world in which every investment needs to factor the future impacts of climate change. Moreover, this needn’t hamper the overriding priority of delivering returns to stakeholders. There are many exciting opportunities for profitable investments which also contribute to combating climate change across the planet.

Indeed, according to an Allied Market Research report (2018), the renewable energy market alone is expected to top $1,500bn in valuation by 2025, presenting a huge opportunity for investors as businesses and regulators strive to transition to cleaner energy.

Aktia Asset Management is a responsible steward of capital, and has long been aware of the huge potential benefits of sustainable investment, as well as the moral requisite to act to secure a better world for today and tomorrow.

‘We know that there is an urgent need for a transition to a low carbon economy,’ declares Markus Lindqvist, Director of ESG at Aktia. ‘But the transition must be a fair one, so we need to take into consideration the social aspects of the transition. What impact does this transformation have on civil society?’

In order to ensure these impacts are kept in sight, the United Nations’ Sustainable Development Goals are an invaluable framework for asset managers like Aktia, who refer to them when analysing investment opportunities and reporting on ESG performance and impact of portfolios to add transparency how they are delivering social and environmental value as well as economic returns.

Aktia also has its own internal framework, a country selection model for its Emerging Market Debt strategies, which it uses to identify risks and opportunities for the allocation of capital, focussing on three primary areas: economic, social and political. It uses these pillars to analyse  countries – considering aspects like human capital & education and political stability & corruption on top of more traditional measures like GDP growth & inflation.

Together, these internal & external frameworks form a process of diligence that allows Aktia to make the best possible decisions on investments that benefit people and the environment. But it’s an industry that can’t stand still, which is why Aktia is constantly reviewing how it can act and engage externally to encourage sustainability. By promoting AI and other advances in technology, pushing countries to adopt for sustainable practices and contributing to education around the world, Aktia is helping to build a better tomorrow and leading from the front on climate action.