Climate Change Investment Solutions: A Guide for Asset Owners

The aim of this guide is to provide asset owners with a range of investment strategies and solutions to address the risks and opportunities associated with climate change. The guide is targeted at asset owners and more specifically at trustee boards and investment committees, but also contains insights for asset managers.

This guide builds on the report Financial Institutions Taking Action on Climate Change (2014)2. That report presented a range of different leadership actions that financial institutions have taken in response to climate change. It concluded that there is a need for these actions to be more widely integrated into mainstream investment processes to ensure that investment portfolios are more resilient to the financial implications of climate change. This requires, in part, the development and adoption of new industry norms, tools and expertise that embed climate change into core investment processes, which this Climate Change Investment Solutions guide aims to contribute to. The guide also affirms that corporate and policy engagement are important complementary strategies which can address climate change risks across portfolios and facilitate new investment opportunities.

The guide is presented in 4 sections as depicted in Figure 1, each of which sets out a range of suggested actions that asset owners can take.