Climate Change Policy

Bentham Asset Management’s investment management philosophy is based on a strong credit culture and a systematic investment process, focused on preservation of principal and protection against downside risk.

In keeping with this investment philosophy, we recognise the risks posed by climate change to creditworthiness, and therefore seek to incorporate analysis of climate risks into our investment processes. We apply up-to-date, evidence-based information to support our analysis of climate risks, including both direct physical impacts of climate change, and policy impacts from regulation to curb greenhouse gas emissions.

Bentham accesses directly or through it ESG consultant relevant climate science updates from recognised authorities (eg Intergovernmental Panel on Climate Change, CSIRO, Bureau of Meteorology) to inform analysis and assessment of proposed investments. This may include current risks from observed climate change relating to increasing extreme weather events such as drought or flooding, regional climate change predictions, or risks associated with climate change adaptation (eg. increased asset maintenance costs, infrastructure costs).

Bentham monitors climate change policy developments across international jurisdictions and technological developments to identify investment risks and opportunities. This may include analysis of the carbon intensity of investments and exposure to regulation, or technologies which may be disadvantaged or benefit from decarbonisation.

Bentham supports the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) and assesses issuers on both transition and physical risks to their business in relation to Climate Change. Bentham also asks issuers if they have adopted the TCFD framework. Bentham also supports The Paris Agreement on Climate Change signed in 2016.