Osmosis Investment Management has launched the Emerging Markets Core Equity Transition Fund, aimed at resource efficiency in regions that account for the majority of global emissions.

The fund is the result of a three-year programme to research and standardise publicly available environmental data across emerging markets. This shows that EM environmental data now has the depth, breadth, and consistency required for quantitative portfolio construction.

The firm says the fund uses an exclusion-based strategy that reduces ownership of carbon, water and waste by approximately 60% while maintaining diversified exposure across the economy. The fund will use the MSCI Emerging Markets as its benchmark

Osmosis CEO and Founder, Ben Dear, said, “Emerging markets sit at the centre of the climate challenge, yet investors are too often reliant on limited third party data and simplistic negative screens that lead to sub optimal portfolios and, in some cases, entirely inaccurate environmental profiles. By applying our Resource Efficiency process here, we can offer investors disciplined portfolio construction with environmental insight that is grounded in genuine data and genuine research.”

Osmosis Head of Emerging Markets Research, Jamie Padkin, said, “Data is the decisive factor in quantitative emerging markets investing. Our mandate was to replicate our developed markets methodology while adapting to the complexity of these economies. I am delighted that this research effort now results in a fully investable strategy that challenges outdated assumptions about sustainability data in emerging markets.”

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