While investors face increasing pressure from stakeholders to reduce emissions across their portfolios, the increased availability of robust ESG data is making it easier to quantify and continually assess carbon exposure.
A common practice adopted by the investment community is the development of an “exclusion list”, which bars investment in firms or products that derive the majority of income from polluting or otherwise-harmful industries.
But creating meaningful change is more than just about carbon exposure elimination, said David Swift, COO of activist investor, Engine No. 1, at FinanceAsia’s Financing Climate Change conference last week.
“A lot of investors are concerned with...