Strategic climate science initiative

Press release

Boston, MA, September 24, 2018 – Wellington Management Company LLP (“Wellington”), one of the world’s largest independent investment management firms, and Woods Hole Research Center (“WHRC”), the world’s leading independent climate research institute, today announced a collaborative initiative to integrate climate science and asset management.

This new alliance will focus on creating quantitative models to help analyze and better understand how and where climate change may impact global capital markets. Wellington and WHRC will collaborate on a broad range of projects, including developing investor tools and innovative analytical methods seeking to improve climate risk assessment and investment outcomes. WHRC will also publish academic papers that draw from the climate modeling involved in the project.

Wendy Cromwell, Vice Chair, Director, Sustainable Investment, and Portfolio Manager at Wellington Management said, “We look forward to working with WHRC to thoroughly understand and accurately interpret the latest climate science research and the potential implications of climate change for capital markets. We believe an in-depth appreciation of the risks and opportunities presented by climate change will enhance our ability to help our clients achieve their investment objectives.”

“Climate change is the defining challenge of our time,” said Phil Duffy, WHRC’s President and Executive Director. “It will impact all areas of society, including global capital markets. I applaud Wellington for pursuing a deeper understanding of climate science and for applying related quantitative techniques as part of their efforts to try to better inform their asset management decisions. This new initiative helps display the critical nature of these issues.”

California Public Employees’ Retirement System (“CalPERS”), the United States’ largest public pension fund, will work with Wellington and WHRC to pilot the application of these investment insights. Beth Richtman, CalPERS Managing Investment Director, Sustainable Investments said, “As a long-term investor, we’re continually looking to sharpen our ability to analyze climate risk in our investment portfolio and in underwriting prospective investments.”

About Wellington Management:
Tracing our history to 1928, Wellington Management is one of the world’s largest independent investment management firms, serving as a trusted investment adviser to more than 2,200 institutional clients and mutual fund sponsors in 60 countries. Wellington had over US$1 trillion of client assets under management as of 30 June 2018.

About Woods Hole Research Center:
WHRC has been studying climate change impacts and solutions since 1985, and works with an international network of partners in the private and public sectors to ensure that its science is put to use. Recent major science and policy projects have taken place in Brazil, Mexico, Nepal, the Democratic Republic of the Congo, the US, and others, with collaborators such as the World Bank, NASA, USAID, and The Nature Conservancy. The International Center for Climate Governance has recognized WHRC as the world’s top-ranked climate change think tank for four years in a row.

SUSTAINABLE INVESTING INSIGHTS

Global ESG Research Update — Looking inward on our diversity practices
Our team describes insights gained during a firmwide panel discussion with D&I officers from leading global consumer companies. We also provide an update on our ESG engagement and proxy voting activity in the quarter.
October 2020
Global ESG Research Update — Looking inward on our diversity practices
,
Sustainable investing in 2020 and beyond
This event replay features a panel of leading experts from Wellington Management, the PRI, and Harvard Business School and offers topical insights into sustainable investing.
October 2020
Sustainable investing in 2020 and beyond
,
On the ground in Asia with Niraj Bhagwat
Portfolio Manager Niraj Bhagwat offers his local perspective on Asia, sharing the opportunities and risks he sees in today's volatile and challenging markets.
September 2020
On the ground in Asia with Niraj Bhagwat
,
Enhancing impact: Investor and enterprise contribution
Impact measurement and management (IMM) is central to our impact investing philosophy and process. Contribution lays at the heart of IMM, helping to keep us and the companies we hold transparent and accountable. As we continue to seek levers for enhancing impact, we aim to evolve and hone our thinking about contribution.
July 2020
Enhancing impact: Investor and enterprise contribution
,
Global ESG Research update — Looking inward on our diversity practices
We share our path forward on enhancing diversity and inclusion at our firm, in our communities, and with companies we invest in. We also provide an update on our ESG engagement and proxy voting activity in the quarter.
July 2020
Global ESG Research update — Looking inward on our diversity practices
,
Asking private companies to show their ESG<br> credentials
ESG issues are a growing area of focus in the public market, but what about the private market? Our co-head of Private Investments and our director of ESG, Private Investments, argue for informed and active ownership from the initial investment until the IPO.
July 2020
Asking private companies to show their ESG
credentials
,
Why aren’t markets repricing rising climate risks?
Misperceptions of the cumulative probability of climate-related events may be a big reason why markets have yet to appropriately reprice climate risks. We explain the math and share a new tool designed to help investors more accurately value securities exposed to climate change.
June 2020
Why aren't markets repricing rising climate risks?
,
Chris Goolgasian
 CFA, CPA, CAIA
Navigating sustainable investing: Guide for mission-based organizations
We believe sustainable investing approaches can increase donor appeal, enhance positive impact, and add return potential to an investment portfolio. Here, we share insights on the evolving sustainable investing landscape and introduce five key market inefficiencies and how to take advantage of them.
May 2020
Navigating sustainable investing: Guide for mission-based organizations
,

ESG at Wellington

Learn more about how we integrate sustainable and other ESG-related considerations into our investment decisions