Responsible Investing

Climate risk is financial risk. The past fifteen years have seen a clarion call from investors for information on material climate financial risks, including emissions and climate risk disclosures. These disclosures can help investors and companies build robust and achievable net zero transition plans that align with state, US, and global policy goals. As our collective understanding of the financial implications of the climate crisis grew, these efforts have moved from voluntary practices to required policy — reshaping our understanding of climate risk and capital markets in the process. 

Since 2021, a coordinated campaign has moved through state legislatures and executive offices to restrict the ability of pension funds, banks, and asset managers to weigh climate risk in financial decisions, banning the use of ESG criteria, blacklisting firms, and threatening the flow of capital toward clean energy. It’s a fight over whether the financial system can even consider climate risk, playing out both state by state, in the courts, and in Congressional debate. Our research helps clients navigate this backlash, while keeping our clients oriented to realities at hand: climate change poses risks to the financial performance and economic stability that must be managed.