Perhaps in part a result of client demands, a large and growing segment of the investment community recognizes the opportunities and risks attributed to ongoing biodiversity loss and climate change. Within capitalist societies, capital allocation serves as a primary catalyst with respect to the magnitude, composition and direction of economic growth. Unified asset managers, in other words, maintain significant power to influence climate disclosure reporting and organizational behavior. The incentive to do so is very well described by Sir Partha Dasgupta in Section 1.6 of The Economics of Biodiversity: The Dasgupta Review
"In a widely cited publication in Science, authors estimated that the global flow of the biosphere's services was, toward the end of the 20th century, worth US$16-54 trillion annually, with an average figure of US$33 trillion (Costanza et al 1997). As that figure was larger than global Gross National Product (GNP) in the mid-1990s (estimated by the authors at the time to be approximately US$18 trillion annually) we were meant to appreciate the economic significance of the biosphere."
"The estimate is a case of misplaced quantification. If the biosphere was to be destroyed, life would cease to exist. Who would then be here to receive US$33 trillion of annual benefits if humanity were to exchange its very existence for them?"
CFA Institute: Climate Change Analysis in the Investment Process
Recommends: a price on carbon — expectations for which identified in analyst reports; increased transparency and disclosure on climate metrics; engagement with companies on physical and transition risks; enhanced education within profession; and influence upon policymakers.
Climate Action 100+
Holding largest GHG emitters accountable.
Business sustainability ratings.
Morgan Stanley Capital International (MSCI) Sustainability Impact Metrics
Help investors measure, manage and report on impact in their portfolios and investments.
Morgan Stanley Institute for Sustainable Investing
Solutions to global challenges can only achieve required scale if they can attract a critical mass of private capital.
Morningstar Sustainability Ratings for Funds
Understand how portfolio companies are managing ESG risks relative to peers.
MSCI ESG Ratings
Evaluation of ESG risks and opportunities for portfolio construction and management.
MSCI KLD 400 Social Index - Historical Performance
Capitalization weighted index of 400 US securities that provides exposure to companies with outstanding ESG ratings.
S&P Dow Jones Indices Carbon Scorecard
Carbon footprints of major global equity indices.
S&P Global Trucost ESG Analysis
Assess risks relating to climate change, natural resource constraints and broader environmental, social, and governance factors.
Sustainalytics (MorningStar Company)
Provides ESG and corporate governance research and ratings to investors.
Trillium Asset Management
We engage with the companies that we hold on behalf of clients to press for positive change on any material ESG concern or opportunity.
United Nations Convened Net-Zero Asset Owner Alliance
International group of 33 institutional investors delivering on a bold commitment to transition investment portfolios to net-zero GHG emissions by 2050.