Montanaro: Sustainability as a core value

Sustainability as a core value

Montanaro’s journey into carbon removal was guided by a commitment to credibility, transparency, and impact. In 2019, they codified environmental issues into their official bylaws, bringing their sustainability agenda forward formally. And they expected the same from the companies they invested in. 

Rather than engaging in traditional offsetting, Montanaro sought a rigorous, science-backed approach to carbon removal. Recognising the need to take responsibility for their impacts, the firm wanted to both address its future emissions as well as historical emissions.

"By its very nature, if you're setting long-term carbon goals, you need to build relationships that are reflective of that ambition. A one-time purchase won’t create a lasting impact—we need a partnership that aligns with our vision for the future. As a boutique asset manager rather than a large company, we still need to have access to these technologies in a way that works for us.”

- Kate Hewitt, ESG and Impact Specialist  

Looking both ways, past and present

Montanaro set ambitious climate goals: they wanted a net zero strategy as well as taking responsibility for historical emissions. By leveraging a per-employee metric for the past, Montanaro ensured that its removal efforts also accounted for the company’s historical growth as well. 

No stranger to investing for impact, Montanaro incorporated multiple parameters into their investment criteria, including the fact that long term goals require long term collaboration. By choosing a multi-year partnership with Klimate, they then could better reflect the timeline of the goal and highlight the trust to invest built through Klimate’s robust due diligence. 

Still, innovation and the fast-paced development of the carbon removal industry were a key consideration, alongside finding the right balance between nascent tech and substantial co-benefits. 

Key results: 

Montanaro decided on a multi-year collaboration and chose a portfolio highlighting their interest in both innovation and the important synergies that removals can achieve. By choosing this diverse portfolio approach, they supported more projects and locations, but also minimised risk of this investment. 

The partnership consisted of: 

• A multi-year collaboration involving yearly reporting of emissions from Montanaro in addition to removing historical emissions. 
• Almost 2 years in, they had already removed 854.4 tonnes of CO2e. 

Keeping an eye on market innovation 

Key to the collaboration was an understanding that a robust carbon management strategy is a long-term commitment. The landscape of carbon removal is in constant advancement and the firm looked forward to working with Klimate to stay ahead of industry developments. Whether through emerging technologies or refined methodologies, Montanaro wanted a partnership that continuously improved its approach to carbon removal in alignment with global climate goals.

“In order to reach our net zero goals, we need carbon removal. Our partnership with Klimate is not just about offsetting, it’s about safeguarding the planet for the future, with innovative solutions.” 

– Kate Hewitt, ESG and Impact Specialist

The partnership between Montanaro and Klimate exemplified a forward-thinking approach to corporate climate action. With a shared commitment to innovation, transparency, and long-term sustainability, Montanaro was a part of proving that credible carbon removal is a critical pillar in achieving net zero.

Montanaro is a boutique asset management firm with a team of 40 professionals. They invest only in Small & MidCap companies globally, with a client base of leading international financial institutions, including pension funds, insurance companies, family offices, wealth managers and charities.