New portfolio exclusions introduced

In keeping with its commitment to the portfolio being managed to achieve net-zero carbon emissions by 2050, the Board of Alliance Trust has decided to exclude stocks with significant exposure to thermal coal or producing oil from tar sands. Thermal coal is by far the most carbon-emitting source of energy in the global fuel mix, and tar sands are among the most carbon-intensive means of crude oil production.

Our investment manager, Willis Towers Watson, thinks that, in general, actively engaging with the companies we invest in, is one of the best ways of effecting change and managing risk. But it believes that engagement with these companies is often less viable. “Exclusions aren’t always an effective strategy. But, in some cases, it is the best option left on the table,” says Craig Baker, Global Chief Investment Officer at Willis Towers Watson, and Head of the Alliance Trust Investment Committee.