We believe investors should look beyond traditional sustainability leaders and consider companies that are committed to, but earlier in the process of, moving toward a greener future. Investing in companies that are in the early stages of their transition can provide three key benefits:
• the ability to drive real-world outcomes,
• the potential to generate alpha, and
• the opportunity to eliminate the inherent style biases found in traditional sustainable investing approaches.
We integrate sustainability into our investment process because it is essential for understanding the risks and opportunities companies face, impacts economic growth, and is vital to the world. Our transition-focused approach reflects our belief that sustainability-informed investing can reveal opportunities in virtually every industry.
Innovation is crucial for achieving a long-term sustainable economy due to the complexity and interconnected nature of these issues. Investment opportunities will present themselves throughout asset classes and geographies. Incumbents, or established companies and organizations, play a crucial role in the transition to a more sustainable economy. Their involvement can significantly influence the pace and success of sustainability transitions.
Join American Century Investment’s Head of Sustainable Investing Sarah Bratton Hughes, Co-CIO of Global Growth Equity Patricia Ribeiro and Global Value Portfolio Manager David Byrns, CFA as they discuss transition investing.
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