For 30 years we have shared a simple yet ambitious mission: to deliver outstanding investment returns to our clients; to be regarded as leaders in sustainable investing; and, as active investors, to play a part in making the world a better place.
Built 30 years ago, the four pillars of the Janus Henderson Global Sustainable Equity Fund remain as pertinent today as they were three decades ago. Often, there can be conflicts between environmental and social sustainability. Our approach seeks to address this by using consistent positive and negative investment criteria, and by considering both the products and operations of each business that we invest in. Company engagement and active portfolio management are also crucial to our sustainable investment approach, and, combined, these elements make up our four pillars. It is these four pillars which have enabled the fund to remain at the forefront of sustainable investing for so long; as knowledge of sustainability has progressed, our investment approach has blossomed all the while remaining rooted in the strategy's core beliefs. We consider this to be integral to the strategy's success.
This year is the first time in our 30-year history that we have seen such positive global political harmony on the climate agenda and today, we believe that the stars are aligning for a globally synchronised investment boom into clean technologies. In April, 40 world leaders convened virtually to address the climate crisis at the Leader's Summit on Climate. The White House stated its aim to reduce US emissions by 50-52% by 2030 based on 2005 levels and China premier Xi Jinping announced intentions to phase out coal use from 2026. Meanwhile, the UK government announced the world's most ambitious climate change target to cut emissions by 78% by 2035 compared to 1990 levels.
So, what do these climate commitments mean for the fossil fuel economy? In order to align with the 1.5oC climate limit, we will need multiple solutions to address the multiple sectors and industries involved. Countries must increase electricity share of the primary energy mix from 20% to 50% over the next few decades. The US has already set out material provisions to electrify a portion of the school bus fleet, retrofit buildings to higher environmental standards, reduce the use of coal and gas generation, and invest in the country's electric and renewable energy infrastructure. The UK, meanwhile, has banned the sale of diesel and petrol cars by 2030 and announced a £20m funding pot for electric vehicles. It is small steps like these that are driving the move from a 'fossil analog' economy towards a 'renewable, digital, electric' economy. We refer to this as the Fourth Industrial Revolution and believe that this will be at the heart of decarbonisation efforts.
When we look to the future, we are optimistic. The transition to a low carbon economy is accelerating, sped up by the impending consequences of climate change. For 30 years we have recognised the link between sustainability and innovation, and today we believe we are finally entering a decade of transformational change which will impact multiple industries. As experts in low carbon investing, we are confident that our proven investment approach will place the strategy on the right side of change. Rather than moving with the world, the world is coming towards us and we are excited for the opportunities that lie ahead.
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