Climate Change ESG

In the institutional political context and in civil society, there is now a widespread consensus on the urgency and importance of the problems climate change creates related to global warming. This belief is further strengthened also thanks to a series of substantial investments made by the European Union aimed at promoting the decarbonisation and digitalisation of the economy in order to make it sustainable.

Combating climate change, therefore, means facing a very ambitious challenge, which requires a global rethinking of the current development model, promoting technological progress and structural productivity, to ensure that the economy can grow while minimising CO₂ emissions into the atmosphere.

The European Green Deal shows the way and, given the size of the investments to be made, institutions and governments are called upon to lead this transformation, creating further and significant implications on the markets and on the value of financial assets.

The role that the financial industry can play emerges in this context. A different allocation of capital represents an incentive for companies or institutions to direct their development towards low carbon impact business and technologies, which will probably become the global economy’s main growth engine for the foreseeable future.

Kairos wishes to actively contribute to the creation of a more inclusive, more open and transparent economic system, serving the community, the economy and businesses and does so with the launch of the new KIS Climate Change ESG product because it is important to direct the recovery towards sustainable and fair choices, without losing sight of the investment opportunity that this challenge represents.

Kairos International Sicav Climate Change ESG is Kairos’ solution focused on companies that are able to offer solutions for the economy’s transition from brown to green which explicitly aim to reduce emissions, improve efficiency in the use of resources and limit the physical consequences of climate change.

It is a themed equity product that invests globally, with the aim of achieving long-term capital appreciation.

The management style is active, characterised by fundamental analysis and the manager’s greater expertise to select stocks, as well as by knowledge in the energy efficiency and environmental risks market.

In addition to the main trends related to climate change, KIS Climate Change ESG also invests in contiguous sectors or sectors that are not apparently directly impacted; we can thus distinguish two investment targets:

Kairos has chosen Francesco Zantoni to manage Climate Change ESG.

Backed by its in-depth knowledge of the target market, Zantoni believes that companies that can detect threats and anticipate difficulties or which help find a solution to to problems related to climate change will benefit from structural growth in the long term.

In line with Kairos’ policy and based on research by Sustainalytics (one of the leading European ESG rating agencies), the manager also takes into account compliance with ESG principles by the companies in which it invests, such as by way of example the impact of company decisions on the environment., working conditions, the composition of the boards of directors, capable of having an effect on the value of the company.