Sustainability Now
News and investment research brought to you weekly covering major market trends and new research insights. With topics ranging from climate impact on investment portfolios, corporate actions, trending investment topics, and emerging sustainability issues, hosts Mike Disabato and Bentley Kaplan of MSCI ESG Research walk through the latest news and research that is top of mind for the week.
Sustainability Now
Transition Risk vs. Temperature Alignment: What Really Drives Fund Outcomes?
Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.
Carbon footprints tell you where a fund has been. But do they tell you how it’s positioned for the road ahead?
In this episode, we unpack new research from Positioning Portfolios for the Energy Transition (link to paper) analyzing more than 37,000 funds representing USD 50 trillion in assets. The research finds that funds with stronger energy transition positioning were associated with higher historical returns — and stronger links to decarbonization outcomes.
We explore the distinction between transition pressure (risk exposure) and transition readiness (strategic preparedness), why managing transition risk is different from achieving temperature alignment, and how investors can balance financial performance with climate objectives.
If you think climate analysis begins and ends with carbon intensity, this conversation may change your perspective.
Host: Mike Disabato, MSCI Sustainability & Climate
Guest: Kishan Gangadia, MSCI Sustainability & Climate