Institutional Investors Making Renewables Key Future Trend

Tuesday, January 13, 2015

Institutional investors are increasingly aligning their investments with energy technologies of the future, a new report claims.

According to the 2015 ESG Trends to Watch, from MSCI’s global head of ESG research Linda-Eling Lee, investors have begun to scrutinise the carbon-related risks embedded in their portfolios, using a sophisticated range of tools.

In addition to the measurement of companies’ current carbon emissions, investors can now adopt a total portfolio accounting of current and future emissions, measured against market benchmarks.

They can also access portfolio construction techniques ranging from selective exclusions to tilts of portfolio weights based on current and future carbon characteristics of individual securities.

Source: Investments and Pensions Europe (link opens in a new window)

Categories
Energy
Tags
impact investing, renewable energy