Scientific Beta

IPE: "An equity portfolio where climate considerations represent less than 50% of the determinants of the weight of the stocks should not be permitted to claim that it is climate-friendly or aligned with net-zero ambitions, according to the authors of an EDHEC-Scientific Beta study. In the study, ‘Doing Good or Feeling Good? Detecting Greenwashing in Climate Investing’, Noël Amenc, Felix Goltz and Victor Liu set out how they tested stylised climate investing strategies in developed equity markets to find that popular climate strategies are inconsistent with the objective of influencing firms to reduce their emissions."

IPE 22/09/2021

"(...) An equity portfolio where climate considerations represent less than 50% of the determinants of the weight of the stocks should not be permitted to claim that it is climate-friendly or aligned with net-zero ambitions, according to the authors of an EDHEC-Scientific Beta study. In the study, ‘Doing Good or Feeling Good? Detecting Greenwashing in Climate Investing’, Noël Amenc, Felix Goltz and Victor Liu set out how they tested stylised climate investing strategies in developed equity markets to find that popular climate strategies are inconsistent with the objective of influencing firms to reduce their emissions. In a webinar yesterday, Goltz, who is associate researcher at EDHEC Business School and research director at index provider Scientific Beta, said climate investing was different from standard investing because it also pursued non-financial objectives. Investor initiatives such as the Paris-Aligned Investment Initiative clearly stated contributing to limiting global warming as an objective, he said. (...)"