Climate change poses both risks and opportunities for investors. Working in partnership with our clients, Robeco aspires to take a leading role in contributing towards a net-zero economy, as we firmly believe this will create opportunities to enhance long-term risk-adjusted returns for our clients.

To navigate the transition to net zero by 2050, we need forward-looking models to help make well-informed investment decisions which incorporate not only historical performance but also transition plans, risks and opportunities.

To achieve this, Robeco has invested significant resources in developing such forward-looking climate analytics to help guide our investment decisions. These include a climate traffic light for assessing how well a company aligns with the well-below-2-degree transition pathway in its industry; a climate solutions score to measure a company’s contribution to economy-wide decarbonization; and a climate score to measure a company’s overall impact on climate change and its mitigation.

In this initial white paper, Robeco’s experts explain how different metrics can be used to make a comprehensive assessment of climate transition risks, opportunities and impacts. In Part 2, to published later this year, we will outline our approach to climate scenario stress-testing and share our insights into the implications for different sectors and asset classes.