News in the field

Credit Alpha and CO2 reduction: A portfolio manager approach

This paper discusses the challenges of carbon-dioxide emission measurement on corporate credit portfolios. We illustrate how it can be difcult to translate traditional CO2 reductive strategies into incentives for portfolio managers. As an alternative approach to the footprinting techniques commonplace in equities, we introduce the ECOBAR model which looks at CO2 missions from an ordinal standpoint and takes a risk-based approach to measuring this in credit portfolios.

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Show me the green money!

"Given the fact that green bonds have tended to price in line with their mainstream equivalents, it has been a fairly straightforward decision to switch from non-green to green paper," says Ulf Erlandsson, senior portfolio manager at the fourth Swedish pension fund, AP4."

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Hedging Climate Risk

Article in Financial Analysts Journal by Mats Andersson, Patrick Bolton and Frédéric Samama.
The article presents a simple dynamic strategy that allows long-term passive investors to hedge climate risk without sacrifcing financial returns.

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Sustaining sustainability: What institutional investors should do next on ESG

Mainstream institutions have made progress integrating environmental, social and governance factors into their investering, but they still have far to go. Six ideas can take them to the next level.

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AP4 CEO: climate change is the biggest risk we face

Institutional investors might lose capital permanently if they don’t start acting to limit climate change. This is according to the €34 billion Swedish pension fund AP4’s CEO Mats Andersson.

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S&P Dow Jones Indicies: New ESG concepts evolved; Decarbonisation was the word in 2015

Julia Kochetygova, Head of Sustainability Indices at S&P Dow Jones Indices has reflected on how ESG has evolved in 2015 and what the COP21 Summit in Paris means for the financial world.

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All the world's carbon pricing systems in one animated map

Oregon and Washington leaders are contemplating turbocharging their clean energy transition by instituting carbon pricing here in the Pacific Nortwest. Will a cap or tax on carbon work? Has anyone else ever done this before? Why, yes. Since you ask: Scandinacian countries have been pricing carbon for more than two decades.

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What's Really Warming the World?

Skeptics of manmade climate change offer various natural causes to explain why the earth has warmed 1.3 degrees Fahrenheit since 1880. But can thes account for the planet's rising temperature? Here's some graphics to show how much different factors, both natural and industrial, contribute to global warming, based on finding from NASA's Goddard Institute for Space Studies.

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Climate Time Machine

This series of visualizations from NASA shows how some of Earth's key climate indicators are changing over time.

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