Global investment manager GMO has launched the GMO Horizons Investment Fund to support investors looking to address global emissions risk, while harnessing opportunities to mitigate climate change through sustainable investment solutions. The fund aims to reduce total portfolio emissions by utilising GMO’s proprietary research into emissions risks across company value chains. The firm’s Indirect Emissions Model works to address shortcomings in reported Scope 3 data, allowing the portfolio to target 50% less total emissions than the MSCI ACWI ex Fossil Fuels Index. In addition, the fund will be targeting green revenues of at least three times higher than the benchmark – 27% for the portfolio, versus 9% for the benchmark. The fund will have high exposure to companies where revenue is derived from selling green products and services. “We believe Horizons’ dual objective of reducing total portfolio emissions and increasing exposure to climate opportunities is a unique and comprehensive investment solution in the sustainability space,” said George Sakoulis, Head of Investment Teams and Lead Portfolio Manager on the GMO Horizons Strategy. “The fund represents a low-cost systematic alternative to passive equity investment, avoiding the industry concentration risks and unintended factor exposures found in other offerings in the market.”
