Impact Investing Insights 2024 by Finreon sheds light on the importance of liquid investments for decarbonisation and shows how investors can influence companies through scientifically sound impact channels. The focus is on three main impact channels: Engagement, market signals and non-market signals. One example is the Finreon Carbon Focus® concept, which uses long-short approaches to put targeted pressure on CO₂-intensive companies: low-CO₂ companies are bought, while CO₂-intensive ones are shorted. In addition, active engagement is being pursued with the largest CO₂ emitters in order to improve their climate strategies. This combination of market signals and engagement enables investors to promote sustainable change without jeopardising portfolio diversification.
