Net Zero Investment Portfolios Part 1. The Comprehensive Integrated Approach

Amundi
By December 8, 2022 16:08

Net Zero Investment Portfolios Part 1. The Comprehensive Integrated Approach

The emergence of net zero emissions policies is currently one of the most important topics among asset owners and managers. It considerably changes portfolio allocation and the investment framework of both passive and active investors. The academic literature generally concludes that implementing net zero portfolios and sustainable investing is not costly. Moreover, some investors have chosen to implement highly dynamic decarbonization pathways with a continuous reference to business-as-usual benchmarks. The goal of this paper is to participate in the debate on climate investing by showing that it is not a free lunch. Net zero investment portfolios may involve some substantial costs in terms of tracking, diversification, and liquidity risks.

Amundi
By December 8, 2022 16:08

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