QUAERO CAPITAL has launched Quaero Capital Funds (Lux) – Net Zero Emission, a new UCITS fund invested in companies whose services, products or technologies contribute to the transition to a carbon-free economy. The strategy selects current and future leaders in the field of energy and ecological transition, as well as the circular economy, from around the world and across different sectors. In addition to energy, the fund managers Olivier Ken and Martina Turner also focus on food, textiles, heavy industry, transport, urban planning and the entire supply chain.
Towards a net zero emissions economy
Net zero emissions is the level at which the greenhouse gas emissions generated by human activity are balanced with their absorption or removal. Only by reducing emissions by 55% (compared to 1990 levels) by 2030 and reaching this equilibrium level by 2050 will it be possible to limit global warming to 1.5°C[1]. This objective has strong governmental support in Europe (with the Green Pact for Europe, the Next Generation EU recovery plan, the Fit for 55 package and the REPowerEU energy independence plan), in the United States (with the IRA Act), but also in China, which has committed itself to achieving zero net emissions by 2060. These various plans result in massive investments that will benefit companies active in the sectors concerned.
A very broad investment universe for a portfolio with strong convictions
The fund’s investment universe is particularly broad, since, in addition to energy, it also includes agriculture and the food industry, textiles, heavy industries such as steel, chemicals and cement production, transport, construction and the entire supply chain. Managed by Olivier Ken and Martina Turner, the fund’s investment process is based on an in-depth analysis of the causes of CO2 emissions in the various sectors, and then identifies the most promising abatement technologies before selecting the stocks to invest in. The result is a concentrated portfolio of 30-35 holdings, mainly in large caps. The fund is classified as an Article 9 fund under the SFDR regulation.
A strong commitment to responsible investment and carbon neutrality
Responsible investment is at the heart of QUAERO CAPITAL’s management philosophy and processes, and it has had an in-house team of ESG analysts for some five years. QUAERO CAPITAL has been a signatory to the United Nations Principles for Responsible Investment (UN-PRI) since 2015[2], as well as the Net Zero Asset Manager initiative and the statement of support for the Task Force on Climate Disclosure (TFCD). Furthermore, it is a member of the Institutional Investors Group on Climate Change (IIGCC) and a signatory of the CDP since 2019. Lastly, the management company has committed itself in 2021 to an SRI certification process, which has already been awarded to two of the Group’s strategies.
Jean Keller, CEO of QUAERO CAPITAL, said: “We consider that it is our responsibility as a company to do everything possible to ensure that our activity has a positive impact on the planet and on all our stakeholders. This is why we are resolutely committed to responsible and sustainable asset management, which is an irreversible industry trend and meets a strong expectation on the part of investors.”
Olivier Ken added: “The massive public investments planned in the world’s major economies, as well as changing consumer preferences, will generate extraordinary growth opportunities for the companies leading this transition to ‘net zero emissions’.”
[1] Fit for 55 – The EU’s plan for a green transition – Consilium (europa.eu)
[2] The 2021 PRI Assessment Report is available on the QUAERO CAPITAL website.