Lesson 4 - What next ? essential elements of a climate strategy

We present a framework for climate strategy based on the UN Principles for Responsible Investment (PRI)

It is broken down in three steps:

Step 1 is about knowing your portfolio.  Getting the right portfolio climate metrics and performing climate scenario analysis at a portfolio level in a format that is decision-useful to trustees.

Step 2 is about action to review investment policy and strategic asset allocation in light of Step 1. Decisions on the level of engagement with external asset managers are taken at this stage.

Step 3 is about reporting metrics and setting of long-term and interim targets