How we’re tackling systemic risk and enabling sustainable investing with JO Hambro Capital Management

Our collaboration with JO Hambro Capital Management (JOHCM), an investment management company who manage £22.9 billion of assets, – is driving new research into systemic risk and sustainability. By working together, both teams are enhancing understanding of how global systems risks relate to climate change and sustainability, and how that knowledge can be integrated into company boardrooms across the world.

Led by Professor Alexandra Gerbasi and Professor Tim Lenton, world-leading climate researchers from the University of Exeter Business School and the University’s Global Systems Institute (GSI), are exploring the systems thinking of climate change and sustainability and the implications for business and finance, alongside industry experts from JOHCM and its sustainable investing arm Regnan.

Their work includes developing an innovative new stochastic model that embraces uncertainty to assess the greenhouse gas emissions trajectory of listed companies and their alignment to Net Zero scenarios.

The new model will enable JOHCM to transform how climate considerations influence capital allocation decisions and company engagements. JOHCM is also exploring how this new model can be used to build new investment products that support institutional investors to achieve their climate ambitions and increase investment in activities that support the net zero transition.

Professor Tim Lenton, Director of the Global Systems Institute and project sponsor, said:
“It’s exciting to work with JO Hambro Capital Management on a systemic approach to climate risk and transformation opportunities. This new tool aims to bring the latest understanding of positive tipping points into their business decisions.”

Andrew Parry, Head of Investments at Regnan and JOHCM, said: “We’re delighted to be working in partnership with University of Exeter. They are at the forefront of research into climate change and issues around sustainable systems. Supporting this research and ensuring our investment teams remain at the cutting edge of sustainability is crucial to our clients.”

Our Executive Education Programme is also giving JOHCM’s leadership teams access to the latest research, data and training to ensure a deep understanding of the science of sustainability.