Cardano is a pure-play sustainable investment manager with 30 years’ experience in the field. Cardano brings on board proven technology and a dedicated team of sustainability professionals with industry-leading expertise in planetary boundaries, social foundations, environmental, social and governance (ESG) data and research, impact and stewardship.
Cardano has a sustainability framework across the group which is an extremely rigorous, hands-on and action-based approach focused on ensuring continuous improvements in those companies in which we invest.
The framework is based on the concept of doughnut economics, with our investment activities and portfolios applied within clearly delineated social foundations and planetary boundaries. In terms of the boundaries, the current state of the world is that we are in overshoot (meaning using more than the planet can replenish itself). This is on carbon/climate, deforestation, water use in water-scarce areas and biodiversity. On the social foundation, we are in undershoot on topics like living wage, access to nutrition or access to medicine.
Based on this approach, we have identified 7 transitions that are ongoing or should be started. Cardano wants to play a leading role in these transition from a dual perspective. Making our investment portfolios more resilient and creating an impact on the real world/real society.
We have translated the themes that our in over- or undershoot into measurable targets. These targets reflect the points where there is no longer an under- or overshoot. In total, we have 7 amongst others:
- Climate-neutral in 2050
- Water neutral by 2030
- No net loss of biodiversity by 2030
- Zero deforestation by 2030
We use all our tools available to reach these targets with a focus on the real-world impact mentioned. We have created a model of influence, setting out our instruments and the impact they have in the real world. Buying or selling stocks or bonds is the lowest-scoring element in our model.
Fundamental to our approach is our screening of companies according to their compatibility with our view on the transitions ethical principles and our expectations across seven key sustainability drivers: fossil fuel use, water use, land use, circular economy, issues around waste and chemical use, human capital management and human rights and governance. We assess companies and entities in terms of adaptivity. Are companies willing and able to transition to become part of the sustainable world within the planetary boundaries and the social foundation.
This holistic view determines whether we add a company to our investment portfolio – and also informs our stewardship engagement and voting activities. Unlike some of our competitors, it also applies to all the assets we manage.