April, 2017


Weatherproofing Bonds

When it comes to managing climate risk, what is the wise investor to do?  Low-carbon investing is one possibility. We recently interviewed Marielle de Jong, head of fixed -income quant research at Amundi Asset Management.  She said, “The purpose of low-carbon investing is not to penalize companies that produce a lot of CO2. The question is whether the production line is carbon efficient, whether there is no unnecessary spoilage. That is why the selection criterion is the intensity, the tonnage of CO2 per added value, and not the tonnage itself.” She cautioned, “It is a complex task to measure CO2  […]

Weatherproofing Equities

Risks in finance are many and varied. How can a forward-looking researcher choose which areas need the most attention? We recently interviewed Patrick Bolton, professor of business at Columbia University and asked what led to his interest in hedging climate risk. “I am interested in long-term investing, especially how large long-term institutional investors should think about the risk-return trade-offs they face,” he said. “Long-term investors have to think harder about risks that do not yet appear material to short-term investors. One category of such risks is what is now commonly referred to as environmental, social and governance factors, or in […]