Environmental Investing, Green Finance, and the Green New Deal

Top Papers on Environmental Investing and Green Finance

Last year's IPCC climate change report stressed the critical need for investment firms to align their environmental priorities in order for global goals (like 1.5C) to be achieved.  But how can these goals be financed? What investment mechanisms exist to address the funding gap in renewable energy infrastructure and other areas of environmental improvement?  Recent estimates of the total costs of the "Green New Deal" plan in the United States alone could climb as high as USD 93 Trillion over the next decade.

The below papers look at environmental investing issues from a variety of angles, including - the call to action for the investment community, the green bond market, and the green energy transition. Robeco's podcast starts off by describing the landscape of sustainable investments, particularly the peak in environmental awareness within the investment community and the need to capitalize upon this momentum to achieve ESG investing goals.

Podcast: ‘We are approaching Peak Environment right now’ (Robeco, Feb 2019)

In the first of two podcasts, Daniel Wild (Co-CEO at Robeco) praises the benefits of embracing Sustainable Investing. Investors can enjoy superior risk-adjusted returns while also helping the planet on a range of environmental, social and governance (ESG) issues at the same time.

United States: What is the "Green New Deal"? (short list of media reports)

The Green New Deal (GND) is a set of proposed economic stimulus programs in the United States that aim to address climate change and economic inequality. Find out more via this Wikipedia page listing.

Europe: Financing the European Energy Transition (Aquila Capital, Mar 2018)

The share of renewable energy in the European electricity generation mix has heavily increased in recent years with no signs that this trend is going to stop anytime soon. This paper by Aquila Capital examines some of the industry changes taking place.

Agriculture in the low-carbon era: Why we can’t wait until the cows come home (Hermes IM, 2018)

For compliance reasons, this paper is NOT accessible in the United States

Agriculture had a ‘green revolution’ in the 1960s, resulting in greatly increased production. But it still isn’t green. The industry is also a climate-change victim. Whilst farmers will have to dramatically improve crop yields to feed the growing world population, rising global temperatures will make that task all the more difficult.

ENVIRONMENTAL INVESTING AND CLIMATE CHANGE

Navigating climate scenario analysis: A guide for institutional investors (IIGCC, 2018)

Climate change presents a potential systemic risk to the financial system. This 60-page document by the IIGCC serves as a ‘how-to guide’ for institutional investors who are beginning to construct and conduct scenario analysis.

Experts on Climate Change (DWS AM, 2018)

For compliance reasons, this paper is only accessible in certain geographies

This report by DWS AM presents everything you need to know about climate change from a scientific, legal, actuarial, accounting, investment consultant, and portfolio management perspective.

Addressing climate risks and opportunities in the investment process (IIGCC, 2018)

This 42-page report has been authored by the IIGCC. It acts as a guide to address climate risks and opportunities for asset owners.

An Investor Framework for Addressing the Impact of Climate Change (Callan, 2018)

In this paper, Callan's Anna West (Senior VP and ESG Practice Leader) lays out the major considerations for long-term investors in regards to climate change. She identifies solutions and areas of progress for those who are seeking to address climate-related risks.

Climate change for asset owners (ICPM, 2018)

This guide was written by asset owners for asset owners. It provides insights into how managers can integrate climate change considerations into their investment processes.

Climate Change: Assessing Impact at the Portfolio Level (Neuberger Berman, 2018)

For compliance reasons, this paper is only accessible in certain geographies

It is widely acknowledged that climate change will have a broad range of impacts on economies and financial markets over the coming decades.

Public Pensions in a Changing Climate (AODP, 2018)

This Asset Owners Disclosure Project (AODP) report assesses and ranks the responses of the world’s 100 largest public pension funds to climate change, and its implications for savers.

GREEN BONDS

Green bonds: Awakening the green giant (Fidelity Intl, 2018)

For compliance reasons, this paper is only accessible in the UK & Europe

Analysts at Fidelity International argue that targeting carbon reduction, alongside developing the 'green' bond markets, could be a better way of reducing climate change concerns.

Shining a Light on Climate Finance (S&P Global Ratings, 2018)

In this COP24 magazine, S&P Global Ratings presents 15 articles on climate finance, including topics such as green bonds, climate adaptation, green CLOs, water risk, and smart cities.

Video: Green Bonds Primer (CFA Society New York, 2018)

CFA Society New York hosted its 2nd Annual Green Bonds Event on 3 May 2018. The main event was a panel discussion among Moderator, Heike Reichelt, Head of Investor Relations and New Products at the World Bank Treasury, and five panelists.

Growing the U.S. Green Bond Market: Actionable Strategies (Milken Institute, 2018)

This report is a collaborative effort between John Chiang (California State Treasurer) and the Milken Institute. It examines the U.S. green bond market and provides some actionable strategies and solutions to support its growth.