Aligning Capital Formation & Climate Change
Capital Markets & Climate Change Investing
On this segment of TheIMPACT, we speak with Chris Goolgasian of Wellington Management about the capital markets, climate change, and how to evaluate risk when deploying, managing and re-balancing assets into sustainable investments.
Chris Goolgasian is the Director of Climate Research, Portfolio Manager & Managing Director at Wellington Management.
Wellington Management is bridging the time horizon gap between Finance & Climate Science, with P-ROCC framework.
Chris explains how the capital markets are trained to primarily focus on transitional risk disclosure. Whereas, physical risks can present investors with unplanned and sudden changes, or disruption, to businesses and/or assets.
Transitional risk is the transition to a lower-carbon economy and their risk of technological, social pressure, regulatory, liability, and asset risk.
Physical risk is associated with the physical effects of climate changes in water, availability, sourcing, and quality, food security, and extreme temperature changes.
Wellington Management and CalPERS launched an innovation framework to help executive teams understand physical risk when evaluating the implications of climate change as portfolio and asset managers.
P-ROCC (Physical Risks of Climate Change) framework aims to promote a more informed investment decision for decision makers, portfolio and asset managers through improving the transparency layers on how stakeholder entities disclose their physical vulnerabilities.
This empirical approach to a more sustainable future as measured by investments into the industries most impacting climate change is explained in much greater detail in the video above.
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TO LEARN MORE:
Wellington Management – https://www.wellington.com/
CalPERS – https://www.calpers.ca.gov/
Christopher J. Goolgasian – https://www.hartfordfunds.com/fund-managers/chris-goolgasian.html