Fragmented climate change investment strategy hinders progress

Author: Amélie Labbé | Published: 1 Nov 2017

Financial markets have made some progress in addressing the 2015 COP 21 agreement objective of reducing reliance on carbon intensive assets. But investors and asset managers still have a long road ahead of them when it comes to dealing with the transition risk as the focus increasingly turns towards responsible investment. 
Many market participants are stress testing their fixed income and equity portfolios against various climate change scenarios, trying to establish the proportion of fossil fuel exposure they should retain – if any at all - if they are to play their part in the fight against global warming. A Boston Common Asset Management report estimates that over 80% don’t integrate the results of any environmental stress testing carried out into their business decisions, though...