The practices outlined in this report aim to improve investment opportunities sourced through climate investing.
Climate change impacts and risks are becoming increasingly complex and more difficult to manage.1 Asset owners around the world are moving fast to adapt investment processes in response to the risks and opportunities related to climate change, but even the most sophisticated are struggling with the myriad of activities required. In a long-distance race such as a marathon, the pacesetters set the tempo and the standard for others to follow. Their activity ensures the group as a whole has a higher
probability of achieving their goals. This paper provides actions for the investment community as a
whole to set the tempo on climate investing, based on insights from these leaders. These actions help
to shape a Climate Benchmark – a self-assessment benchmarking tool that includes over 80 activities
integrating climate factors into investment decision-making – that allows asset owners to measure
progress over time.
More specifically, this paper:
- dentifies the four most pressing challenges impeding climate investing today, based on the peer-group analysis of responses from asset owners around the globe to the Climate Benchmark
- Highlights practices and relevant frameworks of advanced investors that address these challenges and can be adopted by all investors
Key outcomes
Asset owners that completed the Climate Benchmark of investment practices identified the most pressing challenges impeding climate investing today as:
- Defining and implementing a transition roadmap
- Measuring achievement and success
- Engaging investee companies actively and effectively
- Defining climate reporting metrics by asset class and manager
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