UK Climate Engagement

The Redwheel UK Climate Engagement strategy combines an investment objective to provide an income and capital return with a climate engagement aim.

The climate aim, pursued through deep analysis, engagement, and collaboration, seeks to align companies with the goals of the Paris Agreement.

Structural undervaluation

Behavioural biases towards exclusion are reflected in valuations. Low carbon dioxide emitting companies are valued at a premium to high emitting companies – this premium has steadily grown over the past decade. This represents a compelling opportunity for investors that are prepared to remain invested in attractively-valued carbon intensive companies and push for change. 

Portfolio diversification

Divestment and exclusion can increase portfolio risk by limiting a mandate’s investment universe. Active engagement may reduce this risk, by maintaining a mandate’s ability to embrace opportunity across the full spectrum of sectors.

A real world impact

By engaging for change, we can help carbon-intensive companies decarbonise and encourage them to take advantage of the opportunities that could emerge from the climate transition. As consumer preferences and regulations change, new markets will open up – carbon intensive companies are in a prime position to capture these opportunities as part of their decarbonisation drive.


What is active ownership?

Active ownership is a simple concept; shareholders are owners of companies and therefore should actively communicate with companies to influence and support long-term success and value creation, not just act as passive bystanders. It means pursuing engagement directly or in collaboration and fully exercising voting rights. 
We aim to be constructive partners to our investee companies. Acting as owners, we seek to support directors in making the right decisions to progress transition plans, by helping them understand the weaknesses of those plans and help them understand the evolving demands of capital allocators and the capital markets.

Redwheel UK Climate Engagement Strategy Primer

John Teahan, reflects on the recent extreme weather in the UK and how this should remain a reminder to work urgently towards mitigating climate change.

Being bold in their voting decisions, the UK Value & Income team discuss their stance with Barclays ahead of the AGM Season.

A breath-taking one-third of all food produced is lost or wasted, according to the Food and Agriculture Organisation (FAO).

Meet the team

John Teahan

John joined Redwheel in 2010 as Portfolio Manager and Partner within the Redwheel UK Value & Income team.

Ian Lance

Ian joined Redwheel in August 2010 as a Partner and Fund Manager in the UK Value team with fellow colleague Nick Purves from Schroders.

Nick Purves

Nick joined Redwheel in August 2010 as a Partner and Fund Manager in the UK Value & Income team.

Larry Furness

Larry started his career at Redwheel in 2010 supporting the Sales team and now makes up one-fifth of our Redwheel UK Value & Income Team as an Analyst.

Shaul Rosten

Shaul joined the Redwheel UK Value & Income team in October 2022.

No investment strategy or risk management technique can guarantee returns or eliminate risks in any market environment