Latest news with #Robeco
Forbes
2 days ago
- Business
- Forbes
Climate Capital Goes Global As U.S. Turns Inward
An aerial view shows solar panels at the fishing-solar complementary photovoltaic power generation ... More base in Lianyungang, in eastern China's Jiangsu province on July 31, 2024. (Photo by AFP) / China OUT (Photo by STR/AFP via Getty Images) There's an old adage in politics: presidents propose, but markets dispose. That has never felt more true than in today's climate investment landscape. In the wake of President Donald Trump's return to the White House, a quiet recalibration is underway. Investors—global and clear-eyed—are responding not with panic, but with poise. According to Robeco's 'Global Climate Investing Survey 2025,' a new study covering more than 300 institutional investors managing over $31 trillion in assets, the message is clear: the climate investment story is far from over. In fact, many believe it's only pausing before a stronger rebound. Yes, a shift is happening, as only 46% of investors now say climate change is central or significant to their investment policy, down from 62% last year. But the story isn't one of retreat—it's one of resilience. Across Europe and Asia-Pacific, where policy support remains robust, climate remains a top priority for over 60% of investors. Even in North America, where the dip has been most pronounced, many are choosing not to disengage, but to diversify. Shifting Strategy, Not Commitment The data shows we are not yet seeing a mass exodus from climate investing, but rather a strategic rerouting. Nearly 60% of investors say they're waiting to see how U.S. policy develops before making major moves in sectors likely to be impacted. But what's striking isn't the caution—it's the confidence. A majority—56%—believe the impact of current U.S. policies will be temporary. They're not abandoning climate goals; they're simply adapting their timelines. Similarly, 53% say that while the Trump administration may slow down their portfolio decarbonization efforts, it won't stop them. Less than a third believe it will derail their net-zero ambitions altogether. In fact, the long-term picture is anything but bleak. Nearly two-thirds of respondents expect climate change to become central or significant to their investment policies within the next two years, suggesting that today's lull is more of a policy-induced intermission than a structural shift. And even in the near term, optimism is driving action. A substantial 39% of respondents plan to increase investments in climate solutions. Top targets include electricity grid modernization (39%), renewables (34%), carbon capture and storage, sustainable real estate, and advanced battery technologies—all cited by nearly a third of respondents. The appetite is not shrinking; it's becoming smarter, more global, and more resilient. The Global Opportunity Awakens While some see the U.S. slowdown as a setback, others view it as an opening. Investors are expanding their horizons—and fast. Europe and Asia-Pacific are now emerging as prime destinations for climate capital, thanks to consistent policy signals and supportive regulatory environments. According to the survey, 58% of European and 62% of Asia-Pacific investors are more likely to look beyond the U.S. for climate-related opportunities. Even 38% of North American investors are eyeing international markets for deals in climate solutions and transition-aligned companies. This isn't just a geographic pivot. It's a sign that climate investing has truly gone global. No longer anchored solely to American leadership, the movement for climate-aligned capital is now distributed, diversified, and powered by a mosaic of policy environments. When investors look outside the U.S., they're not giving up—they're hedging against volatility and betting on stability. More than half of European and Asia-Pacific investors expect their own governments to maintain or increase net zero policies over the next five years. That's a compelling draw for global capital seeking policy clarity and long-term alignment. Resilience Is the Strategy Even in the trickier terrain of climate adaptation—where concerns about returns and investable products remain—there's growing recognition of future opportunity. Around half of investors believe climate resilience will become a major growth theme for equity markets in the next three to five years. While barriers persist, from product scarcity to uncertainty around risk-adjusted returns, the seeds of progress are being planted. As Lucian Peppelenbos, Robeco's Climate and Biodiversity Strategist, put it: 'While many investors remain committed to climate goals, the overall prioritization of climate change in investment strategies is showing signs of decline, particularly at the global level.' But even in that realism lies a thread of hope: the commitment remains. What's changing is how and where investors are pursuing those goals. In other words, we are witnessing not a retreat from climate, but a rebalancing—one shaped by political currents but ultimately steered by long-term vision. What this moment reveals is something deeper about markets: they have memory. Investors remember the rapid expansion of clean energy investment under Biden. They see how quickly capital can flow when policy aligns with innovation. And many believe that will happen again—sooner than we might think. Trump's administration may be testing the climate economy's political resilience, but it has not shaken the foundational conviction that the energy transition is inevitable—and investable. The climate investment story isn't ending. It's just flipping to a global chapter, with new characters, new settings, and the same central conflict. And that story, investors believe, still ends in net-zero. The plot may twist, but the arc bends toward decarbonization.
Business Times
29-05-2025
- Business
- Business Times
The data advantage: How web scraping and NLP give investors a decision-making edge
In the past week, you would likely have interacted with artificial intelligence (AI) in one way or another. Whether it was with a customer service chatbot or simply unlocking your mobile phone with facial recognition, AI has seamlessly found its way into our daily lives. But before AI even became part of everyday vocabulary, one company was already exploring how it could be used in determining investment strategies. In 2019, global asset management firm Robeco tapped on natural language processing (NLP), which is a form of AI, to help them analyse large volumes of text and signals to find patterns that might influence markets. An international asset manager with one of the world's largest quant equity research teams, Robeco has been at the forefront of quant research, contributing to both academic research and client portfolios for over 30 years. While traditional sources of data such as financial statements and market prices have long been tapped by investors for insights, this new realm of alternative data means exploring unconventional or non-traditional types of data that have not been used in the past for investment decisions. Next-generation quant researchers who delve into such data also use 'web scraped data' to monitor alternative sources like social media and online reviews in real time for a tech product launch, giving them an edge over investors waiting for quarterly reports to gauge sentiment around the product's reception. Using NLP allows researchers to analyse such data, separating the noise from the potential signals. Another example is monitoring the number of job vacancies at firms, viewing an increase as an expectation for future growth. Evolving along with financial markets The use of these next-gen techniques and new data sources allows for more complex and adaptive investment strategies that can navigate the ever-changing conditions in financial markets. These tools do not just benefit existing quant strategies, such as Robeco's benchmark-aware active quant strategies, but also enable the firm to create new next-generation strategies. One example is Robeco's multi-thematic equities strategy that harnesses AI to detect emerging themes such as cancer treatments and satellite communications, and identifies when to enter or exit themes and particular companies. Firstly, the strategy uses a rigorously tested NLP algorithm to detect themes within a vast amount of alternative data including company earnings calls, news articles and management interviews. It then uses a different algorithm, based on sentiment analysis – a process which classifies whether something is positive, negative, or neutral, based for example on vocabulary choice – to select the most attractive companies. Making the right choice Today, many asset managers are jumping on the AI bandwagon. But what should asset allocators or fund selectors look for when evaluating the credentials of AI claims? 'Sometimes 'innovation' is a very overused term,' says Mike Chen, head of Next-Gen Research at Robeco. 'When assessing the quantitative investing capabilities of an asset manager, it's important to look beyond marketing claims. Do the asset managers invest sufficiently in building their proprietary data sets? And do they have a thoughtful, measured, and transparent process, with a team who understands the proper use and potential misuse of new tools and data?' he asks. Chen explains that Robeco is a top-tier quant house and one of the few with strong fundamental equities and fixed income teams. In fact, the Robeco quant team started out by providing stock ranks for the portfolio managers' input in their fundamental emerging market team. Today, the quant team can get feedback from the fundamental teams on dynamics the model might not pick up, such as stock-specific events, sector-specific adjustments, or macro considerations in emerging markets. The fundamental teams can use quant tools to identify promising investment opportunities, relying on a combination of the quant group's long-proven factor research and next-gen signals. In the future, alternative data, machine learning, and NLP will enhance collaboration by improving both quant models and fundamental research, thereby strengthening the firm's offering. Asset managers that can adapt and leverage the growing power of data and AI techniques will see differentiated advantages. Find out more about Robeco quant investing and its active quant strategies. Disclaimer: Important information – capital at risk This information refers only to general information about Robeco Holding B.V. and/or its related, affiliated and subsidiary companies, ('Robeco'), Robeco's approach, strategies and capabilities. This is a marketing communication intended solely for professional investors, defined as investors qualifying as professional clients, who have requested to be treated as professional clients or who are authorized to receive such information under any applicable laws. Unless otherwise stated, the data and information reported is sourced from Robeco, is, to the best knowledge of Robeco, accurate at the time of publication and comes without any warranties of any kind. Any opinion expressed is solely Robeco's opinion, it is not a factual statement, and is subject to change, and in no way constitutes investment advice. This document is intended only to provide an overview of Robeco's approach and strategies. It is not a substitute for a prospectus or any other legal document concerning any specific financial instrument. The data, information, and opinions contained herein do not constitute and, under no circumstances, may be construed as an offer or an invitation or a recommendation to make investments or divestments or a solicitation to buy, sell, or subscribe for financial instruments or as financial, legal, tax, or investment research advice or as an invitation or to make any other use of it. All rights relating to the information in this document are and will remain the property of Robeco. This material may not be copied or used with the public. No part of this document may be reproduced, or published in any form or by any means without Robeco's prior written permission. Alpha refers to the excess return of an investment relative to a benchmark index and is a measure of performance. Singapore This information is for informational purposes only and should not be construed as an offer to sell or an invitation to buy any securities or products, nor as investment advice or recommendation. The contents of this document have not been reviewed by the Monetary Authority of Singapore ('MAS'). Robeco Singapore Private Limited holds a capital markets services licence for fund management issued by the MAS and is subject to certain clientele restrictions under such licence. An investment will involve a high degree of risk, and you should consider carefully whether an investment is suitable for you.
