Please join IRRCi for a webinar on Tuesday, January 26, 2016, at 11 AM ET to review the findings of award winning research, Beyond Divestment: Using Low Carbon Indexes. The webinar will include a review of the findings and a Q&A period.
MSCI’s Linda-Eling Lee, ESG research head, accepts Investor Research Award from IRRCi executive director Jon Lukomnik.
This research won the 2015 IRRC Institute Research Award for its potential to reshape investor thinking about fossil fuel divestment. The research provides an actionable roadmap for institutional investors trying to navigate a financially viable path for managing carbon risk.
More specifically, Beyond Divestment provides a new framework for evaluating ways to reduce exposure to both current and potential future carbon-related assets. Currently, most approaches are focused on divesting assets from companies in the fossil-fuel sector based on current emissions only. This new research compares a selective divestment strategy with two approaches that use re-weighting and optimization to increase exposure to more carbon-efficient companies and decrease exposure to large current and future emitters, thus aiming to reduce long-term portfolio risk. Both approaches also use optimization techniques to reduce short-term risk against the benchmark.
The research is authored by a team of researchers at MSCI – Remy Briand, Linda-Eling Lee, Sébastien Lieblich, Véronique Menou and Anurag Singh.