Guilherme Pampolin, investment research analyst, Titan Square Mile, selects 5 funds that though qualitative and quantitative assessment are identified as most likely to deliver on their promise of a positive environmental or societal impact.
This December marks ten years since the landmark Paris Agreement was signed. This legally binding accord was adopted by some 195 parties attending the 2015 UN Climate Change Conference, or COP21, in Paris. Recognising the existential threat to future generations posed by climate change, these parties agreed to work to stem “the increase in the global average temperature to well below 2°C above pre-industrial levels” and seek “to limit the temperature increase to 1.5°C above pre-industrial levels.” The fact that a supranational group of representatives had committed to a collaboration against climate change seemed to herald a brighter future for the planet.
Over the ensuing decade, increased instances of drought, flooding and other extreme weather events only go to highlight the vital importance of taking action to reduce greenhouse gas emissions (GHGs). However, while many governments have headlined their initiatives to move towards net zero, real progress can seem glacially slow and, despite the rhetoric, a truly concerted international effort to take meaningful steps to address climate change remains elusive. For example, while the latest COP gathering in Brazil saw 88 countries coming out in support of a roadmap to transition away from fossil fuels, specific references to such a roadmap were disappointingly absent from the final conference text.
The sense that political expediency frequently trumps real climate action can be disheartening for those fearful of an impending climate catastrophe. Nonetheless, sustainable investment can provide a channel through which investors can direct their monies to innovative businesses and governments whose operations can play an important role in facilitating the transition to net zero. Titan Square Mile’s team of analysts conducts qualitative and quantitative assessments on a broad range of sustainable funds to identify those most likely to deliver on their promise of a positive environmental or societal impact. In addition, our 3D research analyses the holdings of investment strategies, determining thematic tilts towards solutions to environmental and societal challenges, including industries which seek to tackle climate change by encouraging greater energy efficiency, cleaner modes of transport and mitigating carbon emissions.
One such strategy is the Goldman Sachs Green Bond fund which holds both a 3D Gold Impact medal and a Titan Square Mile Responsible A rating. This long-standing fund was launched in 2016 with the aim of making green bonds, and the positive impact they can have, accessible to a wider range of investors. Its potential to support the tenets of the Paris Agreement is significant: at the time of our most recent review in November 2025, our analysis found that most of the fund’s investments are directed to bonds providing funding to clean transport, resource efficiency and climate change mitigation projects. From a financial perspective, the fund aims to replicate the characteristics of the aggregate fixed income market by combining government and government-related issuers with high quality corporate debt. Thanks to the investment team’s credible process which combines detailed analysis of green bond issues with strong fundamental credit analysis work, we believe this fund has the potential to deliver excess returns through credit allocation and bottom-up issuer selection.
As its name suggests, the Responsible A-rated PIMCO GIS Climate Bond fund is another strategy that is aligned with the aims of the Paris Agreement. Whilst its track record is shorter than that of the Goldman Sachs Green Bond fund, PIMCO has developed a very credible investment process to facilitate the transition to a net zero carbon economy. The firm’s significant macro and credit resources feed into the management of this strategy which goes beyond merely investing in green bonds. The managers combine green bonds, both labelled and unlabelled, with bonds issued by companies that are leaders in mitigating carbon emissions in their respective industries. This enables them to invest in a broad range of bonds, companies and sectors. Investors in this fund also benefit from PIMCO’s ESG optimised approach, which overweights firms that are awarded best-in-class PIMCO ESG scores. We believe the extensive resources and the reliable investment approach means that this fund has the potential to deliver excess returns through both investment grade beta and a moderate duration posture.
The EdenTree Global Sustainable Government Bond fund is an attractive proposition for investors seeking to achieve exposure to an asset class that broadly tracks global treasuries whilst achieving a positive impact. EdenTree is seen as a pioneer in the world of responsible and sustainable investment having coined the phrase ‘profits with principles’. At least 80% of the fund’s portfolio must consist of green, social and sustainable debt issued by sovereigns and government-related entities – bonds which finance projects that reduce carbon emissions and/or enable greater access to services that empower communities globally. In addition to funding the aforementioned initiatives, the team’s proprietary Oppressive Regime screen takes into account civil liberties, freedom of speech, and human rights in general.
The fund has adopted the FCA SDR Sustainability Focus label, which further highlights the team’s commitment to transparency and robust processes, and Titan Square Mile has awarded it a Responsible Positive Prospect rating.
The UBAM Biodiversity Restoration fund, which holds a 3D Silver Impact medal is a global equity strategy with a more nuanced approach to mitigating climate change. It invests in companies that address the world’s most pressing problems concerning biodiversity, and its holdings have meaningful exposures to themes including environmental purification, waste management services, and environmental control machinery. These play a crucial role in meeting the objectives of the Paris Agreement by directly addressing GHG emissions and enhancing carbon storage. For example, carbon capture & storage machinery traps CO2 from industrial sources, like cement or steel plants, and permanently stores it underground, cutting emissions from “hard-to-abate” sectors. Environmental services promote a circular economy through waste management, recycling, and resource efficiency, thereby reducing emissions associated with raw material extraction and manufacturing. Other activities, such as water, waste and sewage systems, mitigate climate impact by optimising wastewater treatment to capture methane gas and prevent its release, often converting it into renewable energy.
The BlueBay Impact-Aligned Bond fund, which holds both a 3D Gold Impact medal and a Titan Square Mile Responsible A rating, offers investors the potential of capital appreciation and income through exposure to a range of seven positive environmental and social investment themes, including the promotion of clean and safe energy. Indeed, our latest 3D analysis (as at November 2025) found that green bonds associated with general purpose sustainability and energy efficiency projects were significantly represented within the ten most prominent revenue activities of its underlying holdings. It is a predominantly investment grade corporate bond strategy investing globally in public markets while aiming to make a positive contribution to people and planet. Overall, we believe the fund is very well positioned to benefit from its multi-thematic and rigorous credit research process, having the possibility to also invest in traditional sectors should issuers be eligible according to Bluebay’s disciplined impact framework.
Main image: muhammad-afnani-o5zeFu6gREM-unsplash
