Navigate the complexity of low carbon emission and performance attribution
To prevent a climate disaster, a transition towards a low-carbon economy is mandatory. This entails implementing greener investment strategies considering carbon risk.
New metrics are needed to assess this #risk. Researchers at EthiFinance are combining #financial and extra financial measures to integrate the cost of carbon into the valuation of assets. This cost affects both the shareholders and debt holders through a carbon-adjusted credit risk
Integrating carbon risk in investment strategies raises new challenges in terms of performance attribution. Philippe Grégoire , Performance Attribution Expert, Professor at the University of Louvain and Head of Research at AMINDIS , has developed a new carbon #attribution methodology that allows disentangling a carbon effect from the standard Brinson allocation and selection effect.
On 20th September, you will be able to hear more about these methodologies through a one-hour session webinar. Philippe Grégoire and Edouard Pineau , Research Engineer at EthiFinance , will help you understand how carbon risk affects the valuation of assets and how to identify a carbon effect through our novel carbon performance attribution.
The new #carbonattribution approach has recently been published in the “Journal of Performance Measurement” edited by TSG . This methodology does not only consider companies' carbon emissions but also the investments made to reduce their carbon footprint.
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The use of this methodology for the construction of portfolios with reduced carbon emissions, best balances the multiple objectives of investors and managers that go beyond the reduction of carbon emissions.
The webinar will cover the subject matter: