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Alan Hsu
- Portfolio Manager
United States, Institutional
Change
Our Climate Research Team studies the investment risks and opportunities of climate change. They also engage with companies and issuers that they believe contribute to a lower-carbon future, can help the world adapt to changing climate, or are well positioned to manage climate-related risks.
Our approach: Research-based, science-supported
Climate-science collaborations
Ongoing work with two leading research institutions, Woodwell Climate Research Center and the MIT Joint Program on the Science and Policy of Global Change, helps us better understand and communicate physical climate and climate-transition risks.
Climate mapping tool
Working with Woodwell Climate, our Climate Research Team developed our Climate Exposure Risk Application (CERA), which Wellington investment teams can opt to use to view the geospatial relationships between physical climate risks and securities worldwide.
Climate research tools and technology
Our investment teams have access to several data-driven analytics tools, including our Carbon Emissions Dashboard, Net Zero Portfolio View, and Transition Alignment Rating. Our Climate Research Team also offers climate portfolio reviews to all our investment teams to help them assess and enhance climate readiness.
Biodiversity investment research
Given widespread economic dependence on ecosystem services, investors can benefit from a better understanding of the financial risks associated with biodiversity loss and the depletion of natural capital.
Supporting our clients’ net zero goals
Wellington is committed to working in partnership with clients who ask us to implement decarbonization objectives into new and existing mandates we manage on their behalf. Our core commitment is to aim to deliver superior investment results and exceptional service for our clients. Through our research partnership with Woodwell Climate Research Center, we have come to appreciate that the physical consequences of climate change will be felt sooner and be more disruptive than markets expect. As policymakers and markets increasingly recognize and respond to this, the transition to a low-carbon economy is likely to transform certain business models. As a result, we believe actively considering transition-risk management at the company and portfolio levels can help us deliver better financial outcomes for our clients.
Meet our climate investing experts
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Julie Delongchamp
, CFA
- Climate Research Analyst and Team Lead
- <p>2022 Climate Report </p>
Insights
FAQS: Climate investing
In our view, climate change has the potential to significantly impact economic and financial-market outcomes, inclusive of asset prices and valuations. Companies and issuers that are unable to respond to shifting policy and regulation aimed at mitigating the effects of climate change, or that fail to adapt and build resilience to physical climate risks, may see their costs of capital rise and long-term value fall. Conversely, we believe companies and issuers that are helping the world mitigate and adapt to climate change may offer attractive investment opportunities.
Since September 2018, our Climate Research Team has been collaborating with Woodwell Climate Research Center, a leading independent climate-research institute. Working with the climate scientists, our Climate Research Team studies the physical effects of climate change on capital markets and asset prices, integrating those findings into our investment processes, where relevant to our clients’ objectives and the portfolio manager’s philosophy and process.
In January 2022, Wellington and the MIT Joint Program announced a new climate-change research collaboration. The alliance has not only bolstered the research we had been doing on the transition to a low-carbon economy, but also enhanced our understanding of the expected financial impacts of various transition pathways on industries and economies and deepened our decarbonization engagement practices.
We aim to study the investment risks and opportunities presented by climate change. With Woodwell Climate, we aim to bridge the gap between physical climate science and capital markets; understand which companies and regions face environmental and biodiversity risks; and improve our ability to quantify liabilities and appropriately price securities. With the MIT Joint Program, we seek to outline decarbonization pathways for corporate operations, supply chains, and products, while also assessing their potential economic impacts.
We leverage proprietary, data-driven tools and technology, including our Climate Exposure Risk Application tool (CERA), software that Wellington investors can use to view the geospatial relationships between physical climate-risk variables and the assets we consider investing in on behalf of clients. This work facilitates our ability to integrate climate science into fundamental investment insights; to better analyze and question those insights; and to draw practical, action-oriented conclusions. The Climate Research Team also conducts portfolio reviews and develops investor dashboards to facilitate company- and portfolio-level monitoring. The team also supports collaborative climate research at the firm.
Explore other sustainable and ESG investing opportunities
Socially and environmentally positive themes underpinned by structural economic drivers are central to the investment philosophy in pursuit of value creation and/or risk management.
Seeks to invest in issuers whose core products, services, or projects provide environmental and/or social solutions in a differentiated way, with the goal of driving measurable positive impact alongside financial returns
Contact the team
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