ROBECO - Tue, 01/30/2024 - 23:56

Navigating the climate transition with forward-looking analytics

Carbon data measure a company’s emissions in the past. While this is valuable information, it does not accurately reflect the risks and opportunities related to the climate transition. For that, we need forward-looking metrics to analyze the transition readiness of companies.

  1. Research paper address challenge of ‘Navigating the Climate Transition’
  2. Part One looks at data available for forward-looking climate analysis
  3. Different metrics can be used to assess transition risks and opportunities

Climate change poses both risks and opportunities for investors. Working in partnership with our clients, Robeco aspires to take a leading role in contributing towards a net-zero economy, as we firmly believe this will create opportunities to enhance long-term risk-adjusted returns for our clients.

To navigate the transition to net zero by 2050, we need forward-looking models to help make well-informed investment decisions which incorporate not only historical performance but also transition plans, risks and opportunities.

To achieve this, Robeco has invested significant resources in developing such forward-looking climate analytics to help guide our investment decisions. These include a climate traffic light for assessing how well a company aligns with the well-below-2-degree transition pathway in its industry; a climate solutions score to measure a company’s contribution to economy-wide decarbonization; and a climate score to measure a company’s overall impact on climate change and its mitigation.

In this initial white paper, Robeco’s experts explain how different metrics can be used to make a comprehensive assessment of climate transition risks, opportunities and impacts. In Part 2, to published later this year, we will outline our approach to climate scenario stress-testing and share our insights into the implications for different sectors and asset classes.

Download the White Paper (Part One) Here


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