climate change
Investors should not be deterred from using climate-related data, despite its imperfections. Instead, they should understand the data’s risks and limitations and apply judgment to make effective use of it. Investors can help improve the current state of climate-related data by encouraging issuers to adopt global disclosure standards and advocating for disclosure regulations.
The CFA Institute report, Climate Change Analysis in the Investment Process, focuses on the physical and transition risks climate change is projected to create; explains to investors carbon markets; and reviews the resources available for investors looking for the best climate change integration tools.
One of the most important issues surrounding climate change for financial professionals is the policy response regulators and policymakers make around such issues as climate change data transparency and quality.
A standard taxonomy of green finance based on best principles, with an eventual path towards global convergence, would catalyse investments that are desperately needed. This global issue is framed from the point of view of India.