Navigating Investing in Today's Markets with Henrietta Pacquement
Henrietta Pacquement highlights Allspring's distinctive dual-objective approach to climate transition investing—seeking to balance climate and financial goals while adapting to evolving risks and opportunities.
Transcript
Cameron Pickoski: We're here this week in Fort Lauderdale at our National Sales Summit, where the theme is “Charting the Course.” So, with that in mind, Henrietta, we wanted to talk to you a little bit about how you're navigating investing in today's markets. We know that Allspring is committed to being a climate transition pioneer. Can you walk us through a little bit how that looks in the investment process?
Henrietta Pacquement: Thank you, Cameron. So, clients and prospects recognize that we have a very distinctive approach to climate transition investing—one that we've been refining since the launch of our climate transition portfolios in 2021. What makes us distinctive? Well, our portfolios have a dual objective: a climate one and a financial one. How does that work? Well, we select companies that we think are going to benefit from the transition and perform financially and we benchmark ourselves against standard benchmarks. We also take a pragmatic approach in designing portfolio guidelines so that we can manage the evolving balance between transition risks and physical risks. And finally, we identify thematics that we think are going to shape climate investing. In 2026, that includes things like the AI (artificial intelligence) infrastructure build or the resurgence of natural gas and the concentration of rare earth procurement. All of this combined makes us a pioneer in climate transition investing.
Key takeaways
- Dual Objectives: Allspring's climate transition portfolios aim to achieve both climate and financial performance, benchmarking against standard metrics.
- Pragmatic Risk Management: The investment process seeks to balance transition risks and physical risks through adaptable portfolio guidelines.
- Thematic Focus for 2026: Key themes shaping climate investing include AI infrastructure, natural gas resurgence, and rare earth procurement concentration.
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