Why Your Portfolio May Be Hot, Cold or Just Right

As investors sharpen their focus on the financial impacts of climate change, they may want to understand not only if their portfolios are aligned with global climate goals but why they may (or may not) fall short of the mark. To do so, they may seek to better understand how different sectors and stocks affect how “hot” or “cold” their portfolios are. Investors can do so by turning to tools such as an implied-temperature-rise metric, which projects the temperature of current portfolio holdings into the coming decades.

Previously, we found that approximately 10% of 65,000 individual funds exhibited an implied temperature rise of 2 degrees Celsius (2°C) or less, while 80% fell somewhere between 2°C and 4°C. In this blog post, we extended the analysis to the sector and stock levels, using two representative indexes tracking emerging and developed markets as examples.

You can now read the full whitepaper at the link below