Portfolio Construction with Climate Risk Measures

Because of the 2015 Paris Agreement, the development of ESG investing and the emergence of net zero emission policies, climate risk is certainly the most important topic and challenge for asset owners and managers now and will remain so over the next five years.

It considerably changes portfolio allocation and the investment framework of both passive and active investors. The goal of this paper is to conduct a survey of the various climate risk measures that are available in the asset management industry and the practices of portfolio construction that use these metrics.

You can now read the full whitepaper at the link below