Coutts Hero Image

Cutting our carbon footprint for clients

We’ve made good progress reducing CO2 emissions from our client funds and portfolios

2 min read

SHARE

Become A Client

When you become a client of Coutts, you will be part of an exclusive network. 

Read More

Our focus on sustainability has been bolstered by beating a carbon reduction deadline by 18 months in most of our funds and portfolios.

At the start of the year, we committed to reducing the carbon footprint from our equity holdings by 25% by the end of 2021.

We’re pleased to report that we had already beaten that target in 10 of our 12 sterling mandates by the end of June. We’re also on track to meet the deadline for the two outstanding sterling products, and our non-sterling funds and portfolios.

“We’ll maintain our laser-sharp focus on this. It’s a crucial element of our purpose to create a more sustainable future in which people, families and businesses can thrive.”
Leslie Gent, Head of Responsible Investing, Coutts

Moving to more environmentally friendly funds

We achieved this by switching from funds that don’t focus on sustainability into those that concentrate on companies with lower carbon footprints, lower fossil fuel reserves and strong consideration for environmental, social and governance (ESG) factors.

We also encouraged the companies and funds we invest in to tackle climate change and reduce their carbon emissions.

The full numbers are below, but highlights for the first six months of this year include:

  •  all Coutts Invest funds exceeded our target, falling on average by 33%
  • we reduced carbon emissions from the Coutts UK Multi-Asset Funds by 29% on average
  •  emissions from our Discretionary Portfolio Service fell 26% on average

Leslie Gent, Head of Responsible Investing at Coutts, says: “This is strong progress in our important work helping clients reduce their carbon footprint. Analysis by Nordic bank Nordea in 2018 found that ‘greening’ your investments could be 27 times more effective than eating less meat, flying less, using public transport and reducing water use.

“All those other things have an important role to play as well of course, but the power of having more environmentally friendly investments cannot be overstated.”

She adds, “We’re acutely aware that this is a moveable feast and carbon data can change, so we’re in no way resting on our laurels. We’ll maintain our laser-sharp focus on this. It’s a crucial element of our purpose to create a more sustainable future in which people, families and businesses can thrive.”

 

the numbers

Here’s our current carbon reduction scorecard in full for the first six months of this year. The numbers show a standard measure of the carbon emitted by companies, expressed in tonnes of CO2 per million dollars of revenue.

 

Carbon Intensity

Coutts UK Multi-Asset Fund

Defensive

Balanced

Growth

Eq. Growth

December 2019 (baseline)

159

189

179

172

June 2020 (current)

128

 

127

 

122

119

Reduction (%)

20%

33%

32%

31%

 

Carbon Intensity

Discretionary Portfolio Service

Defensive

Balanced

Growth

December 2019 (baseline)

154

177

169

June 2020 (current)

123

 

122

 

122

Reduction (%)

20%

31%

28%

 

Carbon Intensity

Coutts Invest (Personal Portfolio Funds)

Lower risk

Lower –medium risk

Medium risk

Medium – higher risk

Higher risk

December 2019 (baseline)

170

179

184

184

184

June 2020 (current)

122

112

128

131

131

Reduction (%)

28%

38%

30%

29%

29%

All numbers as at 30 June 2020. Source: Morningstar data aggregated by Coutts, September 2020

* The tables show the carbon intensity of your fund or portfolio, a standard measure of the carbon emitted by companies expressed in tonnes of CO2 per million dollars of revenue

All numbers as at 30 June 2020. Source: Morningstar data aggregated by Coutts, September 2020

Find out more about responsible investing at Coutts

All numbers as at 30 June 2020. Source: Morningstar data aggregated

When investing, past performance should not be taken as a guide to future performance. The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.

 

* The tables show the carbon intensity of your fund or portfolio, a standard measure of the carbon emitted by companies expressed in tonnes of CO2 per million dollars of revenue

All numbers as at 30 June 2020. Source: Morningstar data aggregated by Coutts, September 2020

SHARE

We’re committed to supporting clients who may be affected by coronavirus and have robust plans in place to minimise any disruption to our service.

ABOUT Coutts INVESTMENTS

With unstinting focus on client objectives and capital preservation, Coutts Investments provide high-touch investment expertise that centres on diversified solutions and a service-led approach to portfolio management. Our investment process is as disciplined as it is creative – ensuring tailored solutions with robust results.

Find Out More About Investing with Coutts