The choices investment managers make when allocating funds and constructing portfolios allow them to be a powerful engine behind a just transition towards a greener, fairer and more sustainable economy.
Algebris, as an investment manager, is fully aware of its impact and is committed to playing its part in the fight against climate change. The company, led by Davide Serra, plays an active role in the sustainability debate, having joined the UN Principles for Responsible Investment (UNPRI), being a supporter of the Task Force on Climate-related Financial Disclosures (TCFD) as well as investor signatory to the Carbon Disclosure Project (CDP). Moreover, through its support of the Say on Climate Initiative, Algebris commits to push listed companies to submit a Climate Transition Action Plan at their AGMs for shareholder vote.
By recognising the extreme urgency of climate change and its challenges, Algebris has also committed to offsetting all its emissions since inception through an operation of forestation. In 2020 the company launched the AlgeTrees project and planted 52’000 trees, with a commitment to plant 1 million more in the coming years.
The AlgeTrees project is being carried out in cooperation with Hakuna Matata, a charity that has been operating in Tanzania for 15 years, helping orphaned children through education and health programs. The project is simple and easily scalable, entailing precise steps: assessing the emission Algebris is directly responsible for (offices, flights, garbage, recycled paper); translating CO2 into an equivalent number of trees by making assumptions on the trees’ absorption capacity over their life-cycle; planting trees that can contribute to the economic welfare of the local community, in line with the UN Sustainable Development Goals (SDGs); monitoring their growth on an ongoing basis and replenishing the stock in the event some perish.
Looking at 2021, Algebris and Hakuna Matata will endeavour to make the knowledge we have collectively accumulated in developing the AlgeTrees project available to anyone (firm or individual) who intends to take action against climate change.
“In the near future, hundreds of millions of people’s lives will be impacted by climate change, which is already in full swing. The transition to a sustainable society will depend on each and every one of us and it is crucial, especially for future generations, that businesses have a clear action plan,” said Davide Serra, Algebris Founder and CEO.