Dimensional targets emissions reductions with emerging markets equity and global fixed income funds

Science-led approach

Dimensional Fund Advisors has launched the Emerging Markets Sustainability Core Equity fund and the Global Sustainability Short Fixed Income fund, both using the firm’s overarching sustainability approach to minimise exposure to high-emitting companies.

The funds are said to target meaningful reduction in exposure to companies with high greenhouse gas emissions, as well as potential emissions from fossil fuel reserves. Both funds will also "take into consideration" issues such as child labour, factory farming, and tobacco. Jim Whittington, head of responsible investing at the firm, said: "Many investors are worried about climate change. Dimensional does not rely on ESG ratings, which are often subjective and inconsistent, as the basis for its sustainable strategies." Dimensional appoints new responsible investment heads He added t...