Scientific Beta
Climate investing strategies seek to reward virtuous companies with increasing capital and provide incentives for management to reduce the climate impact of corporate activities. We analyse whether typical strategies that tilt to stocks with good climate scores or optimise portfolio climate scores are consistent with this impact objective.
Felix Goltz, PhD, Research Director, and Victor Liu, ESG Analyst, at Scientific Beta, will be hosting an IPE webcast entitled "Key Performance Indicators for Climate Investing: How consistent are climate strategies with impact objectives?" on 3 June, 2021 at 2.00 pm BST / 3.00 pm CEST.
Climate investing strategies seek to reward virtuous companies with increasing capital and provide incentives for management to reduce the climate impact of corporate activities. We analyse whether typical strategies that tilt to stocks with good climate scores or optimise portfolio climate scores are consistent with this impact objective.
We analyse common climate strategies and analyse the holdings of such strategies. How strategies decide on weights at the individual stock level, and how these weights change over time is crucial for driving impact on company management to act for the climate. Therefore, we go beyond analysing portfolio level weighted-average scores that are targeted by such strategies and instead ask how well the strategies incentivise companies to reduce the climate damage they create.
The webcast, moderated by Brendan Maton of IPE, will examine the following topics:
- A taxonomy of climate investing strategies
- Identifying the key drivers of capital supply from climate investing to green and brown firms
- Assessing the consistency of signals for incentivising firms to act on climate
Felix Goltz, PhD, is Research Director at Scientific Beta. He carries out research in empirical finance and asset allocation, with a focus on alternative investments and indexing strategies. His work has appeared in various international academic and practitioner journals and handbooks. He obtained a PhD in finance from the University of Nice Sophia-Antipolis after studying economics and business administration at the University of Bayreuth and EDHEC Business School.
Victor Liu is an ESG Analyst at Scientific Beta. He has contributed to the design and documentation of low carbon and ESG indices and supported research and development in ESG data and metrics. Prior to joining Scientific Beta in 2016, he worked in risk analysis and compliance in the financial services industry for a year. He holds a Master of Science in Financial Markets degree from EDHEC Business School and passed CFA Level III.