Climate Risk Management

Evaluate and Manage Climate Risk in Your Portfolio

Developed in partnership with Ceres and the Investor Network on Climate Risk (INCR), RiskMetrics Group’s Climate Change Governance Framework provides a practical means of evaluating extra-financial data across companies and portfolios.

The Framework has been used as the basis for several studies evaluating the relative climate performance of companies in multiple industries, including “Corporate Governance and Climate Change – Making the Connection” and “Climate Change and the Banking Sector”. In 2008, the Climate Change Governance Framework was adopted as part of the INCR’s climate action plan, endorsed by nearly 50 US and European institutional investors with over $1.75 trillion in assets under management.

Now, you too can leverage the Framework adopted by leading investors to better understand and manage your portfolio risk associated with climate change, through our Climate Risk Management solutions.

The Climate Change Governance Framework assesses 14 factors across five key governance areas: board oversight, management execution, public disclosure, emissions accounting and strategic planning.

• Fund-level scoring provides a more holistic view of climate risk across the portfolio, enabling asset managers to better engage with asset owners, and asset owners to understand and evaluate portfolio-level differences.
• Company-level scoring delivers a view into the relative strengths and weaknesses of portfolio companies' approaches to climate change, enabling you to understand the risk contribution of each company.

Benefits of Climate Risk Management

• Demonstrated and accepted climate risk methodology
• Backed by experienced and dedicated climate research team
• Identification of relative strengths and weaknesses of companies to better balance climate risk across portfolio
• Enhanced engagement among asset owners, fund managers and corporations
• Demonstrated strategies to manage climate risk and pursue climate opportunities at the portfolio level

Please contact us for more information about Climate Risk Management.