Understanding Climate Metrics in the Investment Process

Regulators around the world are introducing more comprehensive green taxonomies and disclosure requirements. Starting this year, approximately 200 entities in New Zealand are mandated to disclose clear, comparable, and consistent information about the risks and opportunities presented by climate change. Similarly, Australia is also poised to implement mandatory climate-related financial disclosure requirements in the coming years. With this new reporting regime, measuring and monitoring climate-change exposure and performance has become crucial for companies and financial institutions. 

In this virtual event, MSCI in-house experts explored how market players can select and use appropriate climate metrics to achieve their climate-investing goals.

Key questions addressed: 

• What is the difference between financial risks arising from climate change vs. the impact of investments on climate change?
• How do various climate metrics differ in their scope and objectives? 
• How can market participants identify and use suitable climate metrics to achieve their climate-investing objectives?