Positioning for the transition to net zero emissions

The transition is underway and its pace varies by region.

• The transition is not fully priced by the markets. Portfolios should therefore include transition-related investments.
• Most of the investments needed to decarbonize the economy are made in sectors that are currently carbon-intensive. Investing in the transition therefore also means investing in carbon-intensive companies that have credible transition plans or that will play a key role in achieving this transition.
• The transition will take time and be bumpy, so by excluding carbon-intensive exposures altogether, portfolios may be less protected once morest future imbalances between supply and demand for carbon-intensive materials and materials. ‘energy.