29-01-2024 · Insight

Navigating the climate transition with forward-looking analytics

Carbon data measure a company’s emissions in the past. While this is valuable information, it does not accurately reflect the risks and opportunities related to the climate transition. For that, we need forward-looking metrics to analyze the transition readiness of companies.

Download the white paper (part one) here Also interested in part two? Download it here

    Authors

  • Lucian Peppelenbos - Climate & Biodiversity Strategist

    Lucian Peppelenbos

    Climate & Biodiversity Strategist

  • Emily Homer - Climate Specialist

    Emily Homer

    Climate Specialist

  •  Farahnaz Pashaei Kamali  - Cluster Head - Energy & Utilities

    Farahnaz Pashaei Kamali

    Cluster Head - Energy & Utilities

Climate change poses both risks and opportunities for investors. Working in partnership with our clients, Robeco aspires to take a leading role in contributing towards a net-zero economy, as we firmly believe this will create opportunities to enhance long-term risk-adjusted returns for our clients.

To navigate the transition to net zero by 2050, we need forward-looking models to help make well-informed investment decisions which incorporate not only historical performance but also transition plans, risks and opportunities.

To achieve this, Robeco has invested significant resources in developing such forward-looking climate analytics to help guide our investment decisions. These include a climate traffic light for assessing how well a company aligns with the well-below-2-degree transition pathway in its industry; a climate solutions score to measure a company’s contribution to economy-wide decarbonization; and a climate score to measure a company’s overall impact on climate change and its mitigation.

In this initial white paper, Robeco’s experts explain how different metrics can be used to make a comprehensive assessment of climate transition risks, opportunities and impacts. In Part 2, to published later this year, we will outline our approach to climate scenario stress-testing and share our insights into the implications for different sectors and asset classes.

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Important information

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