"The Framework is the first investment benchmark tool taking a holistic approach to analysing issuer’s climate change performance based on the three objectives of the Paris Agreement: (a) climate change mitigation, (b) climate change adaptation, and (c) alignment of financial flows with a low-carbon, climate resilient pathway."
Environmental, Social, and Governance
Voluntary / Mandatory:
Relevance to investor: "Investors can expect portfolios aligned with this Framework to deliver a potential financial impact by benefiting from any future repricing of climate change risks and opportunities in the capital market. The Framework allows investors to measure issuer performance against the three objectives of the Paris Agreement: (a) climate change mitigation, (b) climate change adaptation, and (c) alignment of financial flows with a low-carbon, climate resilient pathway. This allows investors to systematically include A-list issuers (those that are already performing well on all three objectives) and B-list issuers (those that are moving in the right direction but are not A-list issuers yet) into their investment portfolio. An investment strategy targeting both A and B List issuers should be more resilient to climate change risk and more exposed to opportunities not yet priced in by the market."
Objectives: "The Climate Change Investment Framework aims to provide investors with a benchmark tool for assessing an investment, at the issuer-level, in relation to climate change-related financial risks and opportunities."
Institution behind the policy / framework:
Asian Infrastructure Investment Bank
Amundi Asset Management
Target users: Businesses, Investors
Components of the policy / framework:
Framework that highlights main Metrics and Key considerations across transition risk, physical risk and Low-carbon and climate resilient technologies/activities.