Climate Change is an Investment Risk that Also Creates Opportunities

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.

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

Pillar 3: Stewardship

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.