As more defined benefit funds move down the de-risking path and require liability-aware cashflows, the allocations to credit, and Buy & Maintain, have increased. Given the nature of the strategy is to hold bonds to maturity, it is therefore necessary that these products are not only climate aware but are also structured to aid clients in their transition to net zero.
While measuring and tracking climate risk presents a continued challenge, there has been movement in the right direction and beginning with a set of baseline metrics can help track progress and maintain momentum over time.
This WTW paper shares how clients can begin engaging with their Buy & Maintain managers and offers a case study of a recent mandate they worked with a manager to create.
