Sustainability & Transition

As investors in the energy transition complex, Covalis Capital employs a proprietary research framework that targets companies poised to navigate the transition to a low-carbon, decarbonized, and electrified economy, as well as to capitalize on regulatory changes while mitigating relevant risks. Sustainability and transition factors are embedded in the research process, and the investment team constructively engages with issuers to address material considerations.

Solar Farm
Solar Farm

Sustainability and transition research

Covalis believes that data-driven sustainability and transition considerations and metrics can serve as indicators of quality and profitability, as well as catalysts and risk predictors.

Deep knowledge and understanding of complex regulatory frameworks enable the investment team to navigate material climate and governance frameworks, policies, and risks. Covalis’ internal committees and dedicated resources embed proprietary sustainability and transition research into the investment process as part of its fundamental investment approach.

Engagements

Constructive engagements are used to proactively enhance issuers’ capabilities, supporting C-level executives and relevant stakeholders to unlock value, achieve targets, and address material controversies.

The team believes that monitoring issuers’ sustainability and transition ambitions and commitments, as well as material climate, physical and policy risks, is key to capital preservation and alpha generation. Environmental and corporate governance risks and considerations also play a role in Covalis’ proxy voting decisions.

Field with wind farm in the background

Stakeholders and Industry Groups

As part of its engagement with multiple stakeholders, Covalis Capital actively participates in the sustainable and energy transition investment community. Covalis is a member of the Institutional Investors Group on Climate Change, MFA, and the Alternative Investment Management Association, as well as a signatory to the UNPRI, Climate Action 100+, and the Net Zero Engagement Initiative.

Sustainability program and policies

Information about the entire sustainability program, internal reports, Corporate and Sustainable Investing policies are available upon request.