CFA Lecture

Taking Your Portfolio’s Temperature – Climate Impact Analysis and Temperature Alignment of Investments


With the COVID-19 pandemic, it may seem as though public and regulatory focus has temporarily shifted away from climate-related issues. However, understanding investments’ impact on and exposure to climate change remains a crucial component of portfolio management, both in managing risk and generating alpha. As such, the “temperature alignment” of portfolios is becoming increasingly relevant both in response to regulatory requirements as well as customer demand.

This webinar will provide an overview of recent regulatory developments as well as the status quo of climate impact assessments of financial instruments, and introduce the “X-Degree Compatibility” Model as one method of implementing temperature alignment in portfolio management (using concrete case examples).