Slide 1

 

Authors

Michael Mainelli (Z/Yen)
James Palmer

Research organisations

Z/Yen

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A Portfolio Approach to Climate Change Investment and Policy

Document summary

This report is intended to provide an illustration of the application of portfolio modelling to climate change investment.

Using data published by the IPCC, a Monte Carlo methodology is used to generate investment portfolios, measured in value by GHG abatement and carbon market financial returns. The resulting portfolios were then analysed for effectiveness – revealing some high-level themes about what might be efficient portfolios for investors in climate change abatement.

This methodology provides a starting point for investors wanting to construct a more sophisticated portfolio model for climate change.