How does climate change affect your investments?

At our next Green Drinks on Monday 30 May 2016, we warmly welcome GES member Oliver Marchand from Carbon Delta. The Zürich based equity research firm specializes in identifying and analysing the climate change resilience of publicly traded companies. They were one of the top six climate efficiency startups that won the SAFT competition in Zürich. Please log in and visit our events page for more details! If you’re not a member yet, simply register (it’s free).

Carbon Delta has developed an evaluation system that helps investors assess climate risks in their portfolios, and helps identify how much a company’s value is possibly affected by climate change. They utilise both financial and climate data sources, such as extreme weather risk data and climate model trends based on the IPCC climate pathways.

For each company, they model the whole value chain from supply, to production, to distribution, also taking into consideration geographical and sector breakdowns on each step in the value chain. This data is then “mapped” against the model factors.

The data can be used by investors and managers to assess the climate risks in their portfolios, and identify a portfolio’s most climate risky positions. Active managers can show how to reduce climate change related risks by comparing to benchmarks.

Photo credit: UN Photo/Kibae Park

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