Global Economic Prospects 2024

At Aura Solution Company Limited, we believe that addressing climate change is not only a moral imperative but also a fiduciary responsibility. As stewards of capital and assets for clients around the globe, we play an active role in accelerating the global economy’s transition towards a net-zero emissions future, aligned with the best available climate science.

Our efforts are rooted in the understanding that sustainability and financial success are intertwined. By fostering sustainable practices, we protect our clients' long-term interests while contributing to a more resilient, environmentally conscious future.

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Business and Investment Targets for a Sustainable Future

We have set forth clear business and investment targets to guide our actions toward combating climate change. These targets are aimed at driving systemic change across industries and geographies. We focus on:

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• Decarbonization of Investment Portfolios: Incorporating climate risk and sustainable practices into investment decisions.

• Supporting Low-Carbon Innovation: Investing in clean technologies, renewable energy, and sustainable infrastructure.

• Financing Climate Solutions: Providing capital for businesses and projects that offer innovative solutions to climate challenges.

 

Our 10 Levers of Action

To achieve these ambitious goals, Aura has developed a comprehensive approach, driven by the following 10 levers of action:

At Aura Solution Company Limited, our commitment to combating climate change extends beyond rhetoric. It is deeply integrated into our core business strategy. We are embedding climate considerations across all our asset classes, engaging with clients to support their transition, and leveraging our influence to push for corporate climate improvements. Our 10 levers of action reflect a multi-faceted approach designed to drive impactful and lasting change.

 

1. Integrating Climate into Investment Strategies

We are embedding climate considerations into the foundation of all our investment strategies. This means assessing climate risks, identifying opportunities in low-carbon sectors, and ensuring that all our investments contribute to a sustainable future. Our goal is to decarbonize our investment portfolios by aligning them with the objectives of the Paris Agreement and transitioning to net-zero emissions. This effort spans across all asset classes, whether it be equities, fixed income, real estate, or alternatives.

 

Key actions:

• Prioritizing investments in clean energy, sustainable infrastructure, and green technologies.

• Conducting climate stress tests on investment portfolios to understand potential financial impacts of climate change.

• Implementing an active transition strategy to phase out high-emission industries while scaling up renewable and climate-resilient investments.

 

2. Client Engagement

We recognize the importance of partnering with our clients to drive real-world impact. Aura actively collaborates with its clients, providing them with tools and insights to help them transition to net-zero emissions and develop sustainable business models. This engagement ensures that we not only meet our climate targets but also enable our clients to thrive in a low-carbon future.

 

Key actions:

• Offering tailored advice to help clients decarbonize their businesses and portfolios.

• Providing transparent reporting on climate-related risks and opportunities to clients.

• Educating clients on the financial benefits of sustainable practices and how they can be integrated into their operations.

 

3. Active Ownership

As shareholders, we wield significant influence over the companies in which we invest. We use this influence to advocate for improved climate governance, encouraging companies to adopt science-based targets and take measurable steps toward sustainability. Active ownership allows us to directly shape corporate practices, driving improvements that benefit both shareholders and the environment.

 

Key actions:

• Engaging with portfolio companies to set and achieve ambitious emissions reduction goals.

• Voting at shareholder meetings on climate-related issues, using our voice to champion climate action.

• Actively participating in shareholder proposals that push for stronger environmental, social, and governance (ESG) practices.

 

4. Collaboration with Policymakers

Policy plays a critical role in driving the transition to a net-zero economy. Aura collaborates with governments, regulators, and industry bodies to advocate for policies that facilitate climate action and sustainable growth. By working closely with policymakers, we aim to accelerate the development of frameworks that encourage green investments and penalize unsustainable practices.

Key actions:

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• Participating in global climate conferences and policy discussions to advocate for pro-climate regulations.

• Collaborating with industry associations to align policy goals with sustainability initiatives.

• Supporting the creation of tax incentives and other policy measures that encourage investments in green technologies and renewable energy.

 

5. Sustainable Product Innovation

At Aura, we are continuously innovating to create investment products that reflect the growing demand for sustainability. Our sustainable products are designed to meet client expectations for responsible investing while delivering strong financial returns. These products support our overarching goal of transitioning towards a sustainable global economy.

 

Key actions:

• Developing ESG-focused funds that prioritize investments in companies with strong environmental and social performance.

• Offering green bonds and other instruments that finance climate solutions.

• Expanding our product line to include thematic investment solutions focused on renewable energy, water security, and circular economies.

 

6. Enhanced Risk Management

Climate change introduces new risks to financial markets, from physical risks like extreme weather to transition risks associated with policy changes. Aura uses advanced tools and methodologies to assess, monitor, and manage these risks. By integrating climate risk into our decision-making processes, we are better equipped to protect our clients’ assets while fostering long-term value creation.

 

Key actions:

• Implementing scenario analysis to model potential impacts of climate change on investments.

• Incorporating climate risks into traditional risk assessment frameworks.

• Monitoring regulatory developments and market trends to anticipate changes that may affect asset performance.

 

7. Transparency and Reporting

At Aura, transparency is key to building trust and accountability. We are committed to providing clear, consistent reporting on our climate-related actions and their impact. Our reporting practices are aligned with global standards, ensuring that clients, regulators, and stakeholders have access to the information they need to assess our progress.

 

Key actions:

• Disclosing our climate strategies and performance through regular sustainability reports.

• Adopting international reporting frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD).

• Offering clients detailed insights into how their investments are contributing to climate goals.

 

8. Talent and Culture Development

To drive meaningful change, our people must be empowered with the knowledge and skills necessary to promote sustainability. Aura invests in the continuous development of its workforce, ensuring that sustainability is embedded in our corporate culture. We cultivate a team of forward-thinking leaders who are passionate about delivering positive environmental impact through their work.

 

Key actions:

• Providing climate and sustainability training programs for employees across all levels.

• Promoting a company-wide culture of sustainability through initiatives like green office practices and employee-led environmental projects.

• Hiring and developing talent with expertise in sustainability, finance, and climate risk.

 

9. Climate Research

Research is crucial for driving innovation and shaping effective strategies in the fight against climate change. Aura’s commitment to climate research is exemplified by the establishment of the Aura Research Institute (ARI), based in Phuket, Thailand. ARI is dedicated to investigating global financial trends and investment opportunities that align with sustainability and climate resilience.

 

Key actions:

• Conducting long-term research into strategic asset allocation, portfolio construction, and global economic trends with a focus on climate impact.

• Collaborating with academic institutions, think tanks, and industry experts to stay at the forefront of climate research.

• Publishing white papers and reports that provide actionable insights into sustainable investment strategies.

 

10. Sustainable Corporate Practices

Aura strives to lead by example in reducing its own environmental footprint. We are committed to adopting sustainable operational practices that align with our broader climate goals. From energy efficiency to waste reduction, Aura’s corporate sustainability efforts demonstrate that we are as accountable as the companies in which we invest.

 

Key actions:

• Implementing energy-efficient technologies and renewable energy sources across our offices.

• Reducing paper usage and minimizing waste through recycling and digitalization initiatives.

• Committing to carbon neutrality in our own operations by offsetting emissions and enhancing energy efficiency.

 

Conclusion

Aura Solution Company Limited's 10 levers of action reflect our holistic and ambitious approach to tackling climate change. By integrating climate considerations into every aspect of our business—from investment strategies to corporate practices—we aim to drive systemic change. Through active ownership, innovation, policy engagement, and a commitment to transparency, Aura is not only managing climate risks but also unlocking new opportunities in the transition to a sustainable future.​​