Why investors need clarity around 'The Great Spin-off'

Hitting Net Zero targets

clock • 4 min read
Jeremy Taylor, CEO of Lazard Asset Management (UK)
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Jeremy Taylor, CEO of Lazard Asset Management (UK)

The imperative of hitting Net Zero targets – brought into even sharper focus and, indeed, turbocharged by COP26 – is creating a seismic shift in companies’ business practices and product base but also in their corporate strategy and the way they deploy capital.

If Covid has prompted 'The Great Resignation' whereby a large portion of the workforce reassessed their career paths, climate targets are creating 'The Great Spin-off' - a trend which I think will only accelerate in 2022.  Investors effectively need their portfolios to align with an average temperature of 1.5 degrees, considering the carbon emissions of their holdings. Implementing this mandate in a blunt way, without factoring in the sectors and countries in which companies operate, the progress they are making and the need for their products in society, could lead to very serious ch...

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