International asset manager Robeco today announced the launch of its new Fashion Engagement Equities Strategy, which aims to enable investors to achieve the dual objectives of achieving attractive investment returns and driving sustainability-oriented change in the fashion industry.
According to Robeco, the launch of the new strategy comes at a time when the $2.5 trillion fashion industry is poised for significant growth, driven by factors such as population growth, rising disposable incomes and consumption trends, while the sector also faces a wide range of social and environmental sustainability issues. challenges, including workers’ rights, wage levels below the living wage, very low recycling rates for clothing and high greenhouse gas emissions.
The new fund aims to enable investors to capitalize on the sector’s long-term growth opportunities, while helping drive the sector’s sustainability transition through engagement across all portfolio companies, the company said.
Dora Buckulčíková, portfolio manager at Robeco, says:
“Our belief is that profit and positive change can go hand in hand. There is increasing demand for transformation of the fashion industry. Companies with leading sustainability attributes are likely to outperform laggards in the long term. It is our responsibility as long-term shareholders to encourage transparency and sustainable business practices at the individual company level. We believe this strategy positions investors to benefit from and contribute to the sustainable transition of the fashion industry.”
The new fund, classified as Article 8 under the SFDR Regulation, will invest in and partner with 30 to 40 listed companies across the fashion value chain, ranging from those involved in the sourcing of raw materials to those involved in production, consumption and final consumption. -of-life management, as well as vertically integrated brands in the affordable and luxury segment, in addition to sportswear, jewelry and cosmetics.
Megatrends to consider in the strategy’s stock selection process will focus on companies exposed to casualization, premiumization, circularity and automation, and long-term companies’ activities will focus on sustainability challenges in key areas including decent work, natural resource management , circular models and stakeholder management. and governance and policy.
Alyssa Cornuz, deputy portfolio manager at Robeco, says:
“Fashion brands that adopt sustainable practices can generate better long-term returns through unique positioning and emotional connections with consumers.”