Foundations of Climate Investing
Video
March 1, 2021
How Equity Markets Have Priced Climate Risks
In this paper, we examine the financial impact of climate transition risk on global equity markets and find that climate has increased in importance in the last two years, with potential long-term implications for understanding market behavior. For a summary of the findings, access the research paper, read the blog or watch the video below.
MSCI's Linda-Eling Lee, Global Head of ESG Research, Guido Giese, Executive Director, Core Equity Research and Bruno Rauis, Executive Director, Climate Risk Research, discuss the findings of our new report that examine to what extent climate risk has been priced into equity markets.
Our Research
Foundations of Climate Investing: How Equity Markets Have Priced Climate Transition Risks
To what extent has climate risk been priced into equity markets? Is there a "fossil fuel-based premium" discount and a "green" premium? Has this shifted over time? How can we model such risks as the world moves toward net-zero targets? Access Research Paper
How Equity Markets Have Priced Climate Transition Risks
Have climate risks been reflected in equity prices? How quickly? We find that major climate-related events have played out over time and are increasingly being reflected in stock prices. Read the Blog
Net-Zero Solutions
As businesses, investors and governments explore the transition to a net-zero world, measuring, and managing climate risk has become an ever-more important tenet of the institutional investment process.
Climate Paris Aligned Indexes
The MSCI Climate Paris Aligned Indexes are designed to address climate change in a holistic way by minimizing exposure to transition & physical climate risks and helping investors aiming to align with a net zero world.
Stress Testing Climate-Change Scenarios
Regulators around the world are upping the ante on climate-related financial disclosures. How can investors stress test potential exposures to these changes in policy? We take a look within Europe.
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