Climate Change is an Investment Risk that Also Creates Opportunities



Our Climate Approach

We believe that climate risk can be a material investment risk. We should consider the material climate change–related physical and transitional risks and opportunities of the issuers we invest in, which can help generate long-term value for our clients.

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Climate Change Can Generate Risk and Opportunities That The Market Misprices
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Understanding Physical and Transition Risks and Opportunities Can Give AB an Investment Edge
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Climate education can help investors and issuers manage the effects of climate change and develop new solutions
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At the corporate level, our own environmental footprint is important
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Reduce Our Contribution to Global GHG Emissions
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Contribute to the Growing Research Pool
Add to the growing pool of research and insight on the investment impacts and opportunities of climate change.
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Provide Investment Solutions for Climate Opportunities
Address climate change risks in our investment strategies.
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Help Clients Manage and Reduce Their Climate Risks
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Report Transparently

Disclose the metrics and targets of our funds and business.

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Advocate for Policy Change

Advocate for policy change to lower global emissions and drive investment in climate solutions.


Our Climate Strategy

To take action on our climate beliefs and achieve our climate goals, we have developed a four-pillar climate strategy.

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Pillar 1: Partnership

Our partnership with the Columbia Climate School, including our founding of the Corporate Affiliate Program at the Climate School, is bringing together investors and academics to better understand climate risks and develop solutions to support the low-carbon transition.

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Pillar 2: Research and Integration

Companies should be able to address the material risks related to climate change. That’s why our research analysts across sectors are integrating material climate-related issues into their fundamental analysis of companies, including climate strategy and management, the political/regulatory backdrop, potential environmental liabilities, greenhouse gas (GHG) emissions, low carbon technologies and climate opportunities, for most of our actively managed strategies.


  • Investment modeling—is being developed to incorporate climate scenario analysis and carbon data
  • Research and valuation—is including climate change considerations, which influence investment recommendations
  • Security selection and portfolio construction—increasingly reflects an integrated view of climate change-related risks and opportunities
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Pillar 3: Stewardship

AB’s four-pillar climate strategy draws on expertise from academic and industry partners; works alongside deep research and integration; promotes active stewardship through engagement, proxy voting and policy advocacy; and provides investment solutions—our Portfolios with Purpose—that invest in climate innovators, improvers and low-emissions issuers.
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Pillar 4: Portfolios with Purpose


These portfolios are designed to pursue financial goals while also achieving specific ESG and climate-related objectives.


  • Sustainable portfolios focus on issuers that meet present needs without compromising the well-being of future generations, via alignment with the UN Sustainable Development Goals (SDGs) in health, climate and empowerment.
  • Impact solutions aim to produce measurable social or environmental impacts with their investments.
  • Responsible+ investment solutions focus on responsibility and climate conscious and ESG themes, such as carbon neutrality, and adopt a range of approaches—including negative and positive screens, carbon emissions and pricing filters.

The value of an investment can go down as well as up and investors may not get back the full amount they invested. Capital is at risk.

AB Climate Change Statement and TCFD Report

AB Supports the Paris Agreement at the firm level. Our Climate Change represents AB’s climate policy and annual climate report, complying with the reporting recommendations of the TCFD for asset managers.