CLOSING THE GAP BETWEEN CLIMATE CHANGE POLICIES & INVESTMENT PROCESSES
GOALS
Working with institutional investors to implement your climate change policies, to close the gap between aspirations and actions, to:
Build portfolio resilience and be part of the solution to climate change.
Enhance integration of climate-related risks and opportunities across asset classes to foster longer-term thinking and a more holistic approach to valuation frameworks.
Demonstrate positive social and environmental impact through alignment with the SDG framework.
Disclose activities and outcomes including TCFD alignment.
SERVICES
Our core services focus on closing the gap between climate change policies and investment processes, to move from aspiration to implementation. There is no one-size-fits all solution. The right approach depends on your investment objectives, core processes and the values and preferences of your members and stakeholders.
EMBED INTO ASSET ALLOCATION AND PORTFOLIO CONSTRUCTION
REVIEW AND RATE FUND MANAGERS
UNDERTAKE CLIMATE CHANGE SCENARIO ANALYSIS
DISCLOSE ACTIVITIES AND OUTCOMES
PROJECT WORK
Some examples of our work
THE INEVITABLE POLICY RESPONSE TO CLIMATE CHANGE: IMPLICATIONS FOR STRATEGIC ASSET ALLOCATION
A collaborative project in partnership with the Principles for Responsible Investment, Energy Transition Advisors and Vivid Economics to examine the implications of a late but rapid and forceful climate policy response for investment portfolios. Identifies best practice principles, SAA models and portfolio construction techniques to build resilience to the climate transition.
HOW TO INVEST IN THE LOW CARBON ECONOMY
A guide prepared for, and published by, the PRI highlights the investment strategies available to investors in their efforts to align their investment portfolios with a lower carbon, more climate-resilient economy. It is designed for investors that have developed (or are in the process of building) their climate-related policies and processes, and are moving to implement them (particularly, the implications for investment allocations).
The guide focuses on three main areas for investor action:
1. Low-carbon, climate-aligned investment opportunities
2. Integrating climate-related risks and opportunities into investment processes
3. Phasing out investments in thermal coal
AN ASSET OWNER'S GUIDE TO THE TCFD RECOMMENDATIONS
The FSB Taskforce on Climate–Related Financial Disclosures (TCFD) provide a global framework to translate non-financial information into financial metrics. The TCFD has been endorsed by over 238 companies, including 150 financial institutions representing a combined market capitalisation of over US$6 trillion and US$81.7 trillion assets under management.
This publication provides practical guidance for asset owners to implement the TCFD recommendations.
CLIMATE CHANGE ROADMAP
We have worked together with a number of asset owners to support their efforts to develop a roadmap for action to manage the risks related to climate change and capture the opportunities. The projects focus on moving the organisations from policies through to implementation over time, including the identification of clear milestones and outcomes to measure and report progress over time.
IMPLICATIONS OF CLIMATE CHANGE FOR LONG TERM CAPITAL MARKET ASSUMPTIONS
Providing ongoing research and strategic guidance to institutional investors on the potential implications of a range of climate change scenarios for long-term risk/return assumptions across asset classes. This includes building tailored solutions to support asset owners in their efforts to consider the implications of climate change for strategic asset allocation decisions and portfolio construction.
ABOUT
Climate Insight is a specialist consultancy and research firm that works with institutional investors who strive for best practice integration of climate change into investment processes. It cultivates alliances with industry experts and specialists to provide unique and best-in-class solutions to support investors in closing the gap between their aspirations and actions. It is led by Danyelle Guyatt who has over 20 years experience as an investment professional and holds a PhD on overcoming the behavioural impediments to sustainable investment.
CONTACT
Thank you for your interest in Climate Insight. Please contact us if you are interested in a conversation or exchange on how we might be able to work together.