As of 12/15/23, Impax has updated its fossil fuel policy. Learn more here.

Impax is a specialist asset manager investing in the opportunities arising from the transition to a more sustainable economy.  Across our strategies, we aim to build more resilient portfolios by managing risks, including climate-related risks.  Such risks include material risks to companies with fossil fuel-related assets and activities, in the form of government intervention to regulate greenhouse gases, changes in consumer preferences, technological developments and other liabilities, like stranded asset risks, in addition to reputational and litigation risks.   

To mitigate or eliminate such risks, all of our strategies have adopted a fossil fuel policy as described below.   

Categories of fossil fuel companies under this policy include companies that Impax determines are:  

  • Deriving any revenues or profits from fossil fuel exploration and production1; or  
  • Deriving > 5% of revenues or profits from fossil fuel refining, processing, storage, transportation and distribution, as well as utility power generation2

We will not invest in companies in the first category above as we believe they face significant climate transition risks. Nor will we invest in companies in the second category above, unless we have determined that they have credible plans for climate risk mitigation aligned with the transition to net zero. 


1 Whether coal mining, or conventional oil and gas, or non-conventional sources such as shale gas.

2 The Impax Funds’ Fossil Fuel Policy does not apply to:

  1. Companies with indirect exposure to fossil fuels such as automotives, transport, industrials and financials.
  2. For example, emerging market utility, storage or distribution companies, as these companies are providing transitional air quality solutions, e.g., replacing coal in regions where coal represents a high proportion of the energy mix in the grid system.

Impax invests in companies and assets that we believe are well positioned to benefit from the transition to a more sustainable economy.

For all of our strategies, we aim to build more resilient portfolios for our investors by managing risks, including climate-related risks. Specifically, we believe climate change poses material risks to fossil fuel companies in the form of expected government intervention to regulate greenhouse gases, changes in consumption patterns, and other liabilities, like stranded asset risk, reputational risk, and litigation risk.

In addition, a certain number of our strategies are “fossil fuel free”. Given the range of definitions in the marketplace we fully disclose Impax’s definition, providing additional transparency for investors, as set forth below:

Our definition of ‘Fossil fuel free’

Fossil fuel (thermal coal, oil and gas) – Energy Sector: exploration & production and refining & processing

Companies with >0% revenue or profits1 derived from direct fossil fuel activities identified above will be excluded from the portfolio.

Storage and distribution sector: storage & distribution

Companies with >5% revenue or profits1 derived from direct storage and distribution activities will ordinarily be excluded from the portfolio although companies may be included in the portfolio if the company has established itself as a leader in the transition to a zero-emissions energy economy with reduction targets, including Scope 1, Scope 2, and Scope 3, that are compatible with the Paris Agreement’s target of limiting future warming to 2⁰C, and has agreed to publicly report on progress. 

Utility power generation sector: coal, oil, natural gas

Companies with >5% revenue or profits1 derived from the above power generation sector will ordinarily be excluded from the portfolio although companies may be included in the portfolio if the company has established itself as a leader in the transition to a zero-emissions energy economy with reduction targets, including Scope 1, Scope 2, and Scope 3, compatible with the Paris Agreement’s target of limiting future warming to 2⁰C, and has agreed to publicly report on progress. 

Green bonds

When we invest in a bond whose use of proceeds specifies that the funds raised will be used to finance renewable energy, or other activities consistent with a Paris-aligned transition to a low-carbon economy, we may invest in those bonds without regard to the issuer’s percentages of revenue or profits as described above.

Our fossil fuel free strategies

Impax Strategies

  • Leaders Strategy
  • Climate Strategy
  • Global Opportunities Strategy
  • US Large Cap Strategy
  • US Small Cap Strategy
  • Global Women’s Leadership Strategy
  • High Yield Bond Strategy
  • Core Bond Strategy
Scroll to top
To get started, please select your location and investor type below.

If you are invested in Impax Funds – regardless of share class (Investor, Institutional, or Class A) or account type (individual, business or other entity) please select Impax Funds Investor as your Investor Type.

Access Impax Asset Management Limited’s Form CRS here.

Important Information

I confirm that I am a [investor_type] based in [investor_country] and that I have read and understood the important information, privacy policy and terms and conditions which governs the use of this website.

Risk Warning

Capital at risk. The value of investments may go up or down and is not guaranteed.

User Agent: Mozilla/5.0 (Macintosh; Intel Mac OS X 10_10_1) AppleWebKit/600.2.5 (KHTML, like Gecko) Version/8.0.2 Safari/600.2.5 (Amazonbot/0.1; +https://developer.amazon.com/support/amazonbot)