Harvard Management Company, the asset management firm associated with the university's endowment fund has published its 2023 climate report.
The report includes updates on the fund’s transition investment strategy, its portfolio emissions results and engagement with companies in which the fund has invested.
In terms of investment strategy, the fund said it avoids any direct exposure to fossil fuel holdings and expects transition-related investment exposure to soon exceed its fossil fuel exposure. Its portfolio is distinct in that it is tilted towards private equity and hedge fund holdings.
In 2022, the company also conducted assessments of its financed emissions, the results of which it says will be published. In addition, the company advocated in favour of the US Security and Exchange Commission’s proposed disclosure rules.
Looking ahead, the fund will focus on assessing sectoral pathways to net zero, a strategy it says will be key to net-zero investing. According to the report: “Understanding sectoral pathways, and the geographies and regions they cover, is a key component to identifying a portfolio’s decarbonisation pathway and setting targets.”
