Portfolio construction strategies for climate-related risk management and the transition to a low-carbon economy
In early 2019 we noted that climate investing was moving from conversation to action among institutional investors, driven both by regulatory pressure and by a growing desire for organizations to align their portfolios with broader priorities. For institutional investors ready to take action, there are a variety of possible approaches to addressing climate change in a portfolio. Investors can begin by asking themselves four core questions:
What are the risks and opportunities posed by climate change in my portfolio?
What data is available to quantify these risks and opportunities?
What portfolio design/construction approaches are available for investors integrating
What are the performance implications of building a climate-aware portfolio?
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