Sustainable Investment Awards 2023

Listed equities manager of the year: Impax Asset Management

Impax made a series of changes to bolster its investment strategy in the areas of climate and biodiversity in 2022.

The London-based asset manager's investment strategy focuses on the opportunities arising from the transition to a more sustainable global economy.

In November 2022, Impax launched a new global listed equities strategy focused on sustainable infrastructure, including the Impax Listed Infrastructure Fund, which invests solely in listed infrastructure companies.

The fund strategy uses Impax's new Sustainable Infrastructure taxonomy which it says helps map out long-term investment opportunities in listed equities.

Over the past 12 months, Impax updated its proprietary ESG analysis by incorporating biodiversity as both a risk and an opportunity in the Impax Sustainability Lens, a tool that reviews the economic opportunities and risks associated with the transition to a more sustainable economy.

Also in the same year, Impax launched a biodiversity-related engagement program, having already been a member of the Task Force of Nature Related Financial Disclosure (TNFD) Informal Working Group.

In October 2022, Impax was awarded a mandate from Japan's Government Pension Investment Fund (GPIF). The discretionary mandate is run using Impax's US Large Cap strategy, which invests in listed US large capitalisation companies that the managers consider to be well-positioned to benefit from tailwinds from the transition to a more sustainable economy.

Furthermore, Impax has continued to communicate the environmental impact of its investment activities through impact reporting. In 2022, Impax expanded its reporting to include additional strategies and metrics, including for social impact as well as for environmental impact.

Additional environmental impact metrics include renewable energy generated, water treated, saved, or provided, materials recovered, and waste treated. In the case of the Impax Asian Environmental strategy, coal use displaced in Asian cities is also measured.

The 2022 impact report also includes private markets and fixed income portfolios for the first time.

As part of its broader reporting work, Impax also published its first report in line with the recommendations of the Task Force on Climate-related Financial Disclosures.

Impax manages funds and accounts in five areas: actively managed, long-only equity; fixed income; systematic equities; multi asset; and new energy infrastructure. As of 31 March 2023, Impax had £40.1 billion ($49.9 billion) of assets under management.

Performance data

Annualised returns (%)     
 3M1Y3Y 5Y 
Asian Environmental strategy 4.1  -2.1 13.6  6.7 
MSCI AC Asia Pacific Composite 1.7 -2.4  8.4  3.4 
Climate strategy 4.6 -3.3  18.1 11.2 
Global Opportunities strategy 4.2  3.2 16.2 12.7
Leaders strategy 6.0 5.1 18.4 10.8
Specialists strategy 4.6 -2.4 19.9 10.8
Sustainable Food strategy 1.1 0.6 14.4 7.1
Water strategy 6.5 5.3 21.0 12.9
MSCI ACWI 4.4 -1.4 15.5 9.7
US Environmental Leaders strategy 4.2 9.7 21.6 -
MSCI USA 4.7 -3.0 18.1 -
US Large Cap strategy 3.1 -3.5 19.4 15.1
S&P 500 4.6 -1.7 18.7 14.0
Core Bond Strategy 0.3 1.5 -2.3 3.4
Bloomberg US Aggregate 0.2 1.4 -2.7 3.5

Past performance is not a reliable indicator of future returns. Source: FactSet. All data is in GBP as at 31 March 2023. Composite figures are presented both gross and net of management fees and include the reinvestment of all income. MSCI index is total net return (net dividend reinvested), 1Since inception: March 2008. Impax Asset Management Limited claims compliance with the Global Investment Performance Standards (GIPS®). Further information on composite data is available on request.