Your Net-Zero Strategy
Unpacking climate-related risks and opportunities
5 minute read The transition to a net-zero economy is creating risks and opportunities on a global scale. Investors may face material investment risks or miss large investment opportunities if they fail to address the challenge of aligning their portfolios with broadly accepted climate scenarios.
- Finding the emissions in private equity and debt funds
- How climate risk could affect corporate bonds
- How climate change could impact credit risk
- Aligning private equity portfolios with net-zero
- Getting to net-zero for endowments
- Taking your portfolio’s temperature
- Addressing climate risk through engagement
- Unpacking climate-related risks and opportunities
- Measuring the climate-alignment of your portfolio
- Categorizing climate-related financial risk
- Climate risk in equity and fixed income portfolios
- Aligning with TCFD recommendations
Risks and opportunities
The net-zero revolution will reach every corner of our economy and society. It won’t be enough for today’s companies to focus solely on reducing their dependence on fossil fuels. Over the next decade, companies will need to invent solutions and services that replace existing business models.
Among companies at the forefront of the net-zero revolution are those whose businesses hold the potential to transform how the world produces and consumes energy. But the net-zero revolution won’t just be about displacing traditional fossil-fuel businesses with those that provide renewable energy. Just as the digital revolution has reached far beyond the technology sector to impact every corner of our economy, the net-zero revolution will transcend the energy sector. In time, it may touch every company in the world; sooner, in some instances, than companies today might see coming.
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G20 International Conference on Climate, July 2021. Nobody knows what the largest companies by market value will be in 2050, but investors do know that many of the largest companies today did not exist 30 years ago at the dawn of the digital revolution, notes Linda-Eling Lee, MSCI’s global head of ESG research, who discusses the pervasiveness of the net-zero revolution and the prospect of changes to come.
Next-generation climate mitigation technologies. The Grantham Institute at Imperial College London spotlights 18 technologies at the earliest stage of development that have the potential to contribute significantly to reducing greenhouse gas emissions.
Green bonds: Growing bigger and broader. An overview of initiatives that may broaden the market for green bonds and offer more opportunities for investors in search of green investment options or opportunities to help fund the transition to a more sustainable economy.
