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Climate change could change everything

Because climate change poses risks to economies, markets, and therefore, our clients' portfolios, we seek to study the science, engage with clients and companies, and develop related tools and investment approaches.

Robust climate science collaboration

Our firm’s leadership team believes climate change will impact capital markets, creating new risks and opportunities. Working with Woodwell Climate Research Center, one of the world’s leading independent climate research institutes, we research physical climate risks and make science-based insights and projections available to our investment teams.

Annual climate report

Aligned with the Task Force on Climate-related Financial Disclosure recommendations, this report describes our data-driven processes for monitoring, evaluating, and managing material climate-related risks and opportunities. We also describe our approach to engagement on climate change. Finally, we outline the processes, metrics, and output of our own climate disclosures.

Deep climate research

Working with Woodwell has helped us understand the inextricable linkages between these climate risk categories. Our investment professionals engage with companies to help them build resiliency to both.

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Risks
  • Heat
  • Hurricanes
  • Droughts
  • Floods
  • Wildfires
  • Water scarcity
  • Sea-level rise
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Financial impacts
  • Wider credit spreads
  • Agricultural damage
  • Business revenue risk
  • Infrastructure risk
  • Insurance risk
  • Stressed health care systems
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Opportunities
  • Water treatment
  • Sustainable construction
  • Renewables
  • Resilient infrastructure
  • Climate-resilient crops
  • Energy storage
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Risks
  • Carbon taxes
  • Emissions-trading systems
  • Land-use regulation
  • Environmental malpractice
  • Class-action lawsuits
  • Electrification
  • Technology
  • Consumer activism
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Financial impacts
  • Changing cost of capital
  • Real estate devaluation
  • Devaluation in fossil-fuel-heavy industries
  • Sovereign downgrades
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Opportunities
  • Smart/automated grids
  • Electric vehicles
  • Logistics software
  • Sensors/monitors
  • Energy efficiency solutions
  • Insurance innovation

Founding member of net zero asset managers initiative

Our research and investment teams partner with asset owners on their decarbonization goals, in recognition of the potential impact of the low-carbon transition on security valuations.

Climate action 100+ member

We support the main asks of Climate Action 100+: accountability and oversight, TCFD-aligned disclosures, and science-based decarbonization targets.

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Representation and advocacy

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  • U.S. Commodity Futures Trading Commission: Our director of climate research sat on the CFTC’s Climate-Related Market Risk Subcommittee and contributed to its 2020 report “Managing Climate Risk in the U.S. Financial System
  • US Securities and Exchange Commission: As a follow-up to our communication in 2021, we expressed support for enhanced climate-related disclosures, including for greenhouse gas emissions, corporate location data, and climate-related governance in our 2022 letter to the SEC.
  • Disclosure frameworks: Wellington and Woodwell published P-ROCC 2.0, extending our 2019 Physical Risks of Climate Change framework. P- ROCC 2.0 advocates for disclosing the location of physical assets associated with company operations to help investors more fully assess climate-risk exposure.

Climate investor tools

Climate mapping software

Climate mapping in action: Investor case studies

Learn about our Climate Exposure Risk Application (CERA), which can help our investment teams visualize and quantify physical climate risks, and share case studies of how some investors have incorporated it into the investment process.

Mapping the impact of climate change 

In this three-minute video, we share the climate-exposure risk-application tool we have developed in partnership with Woodwell Climate Research Center. This software helps our investment teams track and assess physical climate risks facing capital-market assets around the world.

Investor team dashboards

Peer carbon-emissions dashboard

This dashboard facilitates comparison of companies against peers and average industry intensity. It includes the historical trend of Scopes 1 and 2 emissions intensity, as well as Scopes 1, 2, and 3 intensity figures, leveraging estimated Scope 3 datasets.

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Net-zero dashboard

This one-stop view is designed to help monitor progress toward our net-zero milestones by combining climate-relevant data from company engagements (including holdings with science-based targets) and portfolio construction (including weighted-average carbon intensity).

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