Climate change is one of the defining issues of our time. A changing climate is a planetary issue that spans generations and sectors of the economy; therefore, mitigation and adaptation require systems change on an unprecedented scale, and investors increasingly understand that they have an important role to play. Important work is well underway as investors push companies for improved reporting and analytics and support budding actions to develop disclosure regulations. While improved company level data is important, it is becoming increasingly clear that asset owners will not wait for perfect data before holding managers accountable for climate risk management.
Demands being placed on investors to evaluate climate risk present a series of challenges that include navigating the various types of climate risk data available and the emerging approaches to using data as an input to estimate portfolio level climate risk. Scenario analysis is one of the most useful tools for incorporating climate change research into the investment process, providing insight into climate pathway alignment and compliance with standards such as TCFD.
This webinar was originally recorded by CFA Society Boston on 16 December 2021 at 9:30AM ET and covered the evolving climate data landscape followed by a deep dive into MSCI’s Climate VaR platform.
- Edward Baker – Senior Specialist, Climate and Energy Transition, PRI
- David Lunsford – Head of Climate Policy and Strategy, MSCI
- Andrew Wetzel, CFA – Principal, F.L.Putnam / Event host representing CFA Boston