Sustainability is a key priority for us a Milltrust and nowhere is this truer than in the realms of climate change where the imperative to tackle global warming through the adoption of new and sustainable technologies has become critical.
It’s the final call to save the world from climate catastrophe. Whilst the challenges are high, keeping warming below 1.5°C by the end of the century is still feasible according to the IPCC. However, with every decade lost, these challenges rise and will, at some point, become insurmountable with warming locked into 2°C and above.
The Asia-Pacific region is responsible for over half of global carbon dioxide emissions and is the region most exposed to climate risks. But the region also houses significant opportunites to invest in world-leading companies working on climate impact solutions
The Time to Act is Now
Milltrust’s award-winning Climate Impact Asia Fund backs the leading innovative Asia Pacific-listed companies developing scalable solutions to enable the adaptation to, or the mitigation of, climate change, and the transition to the low carbon economy.
Integrating ESG and impact analysis at the heart of our investment process, and leveraging the environmental expertise of our partners at WWF-Hong Kong as environmental consultants, our objectives are to achieve strong and differentiated shareholder returns for investors whilst delivering positive climate action, active company engagements, alignments our key targeted SDGs, and real environmental impact.
As a key feature of the fund’s environmental strategy, the fund proudly donates a meaningful portion of its fees to the world-leading biodiversity and species extinction conservation work led by our partners at WWF-Hong Kong, channelling private capital to impact-driven nature-based solutions.
Finalist - Investment Week Sustainable ESG Investment Awards 2021
Winner - Environmental Finance Impact Awards 2021
Finalist - Pensions & Investments Brightest Idea Awards 2020
Mlltrust’s Climate Impact Asia Fund is managed in partnership with WWF-Hong Kong, serving as our environmental consultants and acting as key members of the Investment Advisory Committee whose role is to provide environmental expertise, leading insights, and deep knowledge on climate policies, monitor the investments’ climate credentials, with veto-rights on all underlying investments for environmental reasons, and to offer unparalleled access to a global network of contacts from academia, industry, government, and civil society, to help achieve our climate impact objectives.
The World Wide Fund for Nature (WWF) is an independent conservation organization, with over 30 million followers and a global network active in nearly 100 countries. WWF’s mission is to stop the degradation of the Earth’s natural environment and to build a future in which humans live in harmony with nature, by conserving the world’s biological diversity, ensuring that the use of renewable nature resources is sustainable, and promoting the reduction of pollution and wasteful consumption.
WWF-Hong Kong, established in 1981, maintains a vision to transform the territory into Asia’s most sustainable city. WWF-Hong Kong’s Environmental Finance team drives economically viable solutions for climate, species, and habitats.
Renewable energy capacity in Asia, including wind, solar and hydro, continues to grow steadily, in particular in China and India. China’s is targeting that renewable generation capacity accounts for half of all installed capacity by 2025.
China aims to re-use 60% of its urban household waste by 2025, up from 50% in 2020 as well as raising the urban trash utilisation rate to 60%. China will also raise incineration levels to about 65%, up from 45% in 2020.
China’s policy goal to grow EV sales to 20% of new passenger car sales by 2025 creates a strong demand situation for China's leading EV brands. In total, more than 1.3M electric vehicles were sold in China in 2020. China is also, by far, the fastest-growing EV market with a projected growth rate of 24% annually until the end of the decade.
Asia is currently home to 4.5 billion people, who use ~ 65% of the world’s water supply. An estimated 30% of Asia's population is already facing water scarcity with demand for water expected to increase exponentially.
China has proposed ambitious plans to promote smarter energy use in urban cities, requiring that 50% of all new urban buildings be “certified green buildings”, increasing the energy efficiency opportunities in the region.
China has achieved huge technical energy efficiency improvements over the last decade, saving energy output by over 20% to 2018. In its 14th FYP, China aims to cut energy intensity by 13.5% through continued innovation in automation, insulation, and smart metering set to benefit strongly.
Milltrust relies on both primary research and independent data providers to collect and analyse quantitative and qualitative ESG and impact metrics which are assessed at the heart of the investment process. Data points are used for aggregated equity analysis, fund reporting and tracking of KPIs.
• Resource Use
• Environmental Innovation
• Human Rights
• Product Responsibility
• CSR Strategy
• Environmental & Public Health
• Human Rights/Labour Practices
• Working conditions
• Tax, Accounting, Audit, Reporting,
Business Practices & Ethics
• Measure company outputs and contributions to Climate Action
• Mapping of SDG Alignments
• Build relationships with owners and management to implement engagement thesis on KPIs
• Support companies to improve their ESG policies and environmental/climate impacts
• Proxy Voting
Milltrust’s Climate Impact Asia investments actively seek to maximize the alignments to a targetted list of the UN Sustainable Development Goals (SDGs). Achieving the SDGs requires the partnership of governments, private sector, civil society and citizens alike to make sure we leave a better planet for future generations. Milltrust’s Climate Impact Asia investments’ primary SDG alignments of focus are:
Adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030
Take urgent action to combat climate change and its impacts.
Safe and affordable drinking water for all by 2030 requires we invest in adequate infrastructure, provide sanitation facilities, and encourage hygiene.
Ensure access to affordable, reliable, sustainable and modern energy for all.
Make cities and human settlements inclusive, safe, resilient and sustainable.
Ensure sustainable consumption and production patterns
Conserve and sustainably use the oceans, seas and marine resources for sustainable development.
Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.
CLASS: Class A
CLASS: Class B