Asset Owners Disclosure Project: 2016 Global Climate Risk Survey

Nov 13, 2015
  • Description

The AODP Global Climate Index was first published in 2012 and provided stakeholders with a ranking and rating to indicate how each major asset owner performs in managing their exposure to climate risk. The objective of the survey is to facilitate incorporation of climate change capability in the pension and superannuation industry and throughout the wider investment sector.

The launch of AODP's fourth global survey comes ahead of the critical 2015 Paris Climate Conference in December, which will see nations thrash out a legally binding and universal agreement on climate.

AODP sends survey invitations to the world's largest long-term investors (pension funds, insurers, sovereign wealth funds, foundations and endowments) with at least USD2 billion assets under management.

The survey comprises approximately 40 multiple-choice questions covering the following three key areas assessing the asset owner's capability in managing portfolio climate risk:

Engagement / The degree to which asset owners transparently disclose information to and actively engage with the general public and the investment chain: i.e. their members and stakeholders, investment consultants, asset managers and investee companies.

Portfolio Carbon Risk Management / How effectively asset owners are measuring, monitoring and managing climate change risks within their portfolios.

Hedging & Low- carbon investment / The extent of any low-carbon investments held by the asset owner. An asset owner's ranking within each of these categories will be provided back to each asset owner, highlighting where they need to improve and how.

The ratings are based on a mixture of publicly available information and asset owner disclosures. Survey responses are used to rank and rate the asset owners to create the AODP Global Climate Index, to be released in April 2016. The top 500 asset owners (by AUM) that decline the invitation to participate are researched by our team of analysts and assessed using publicly available information or information provided to us by their members or stakeholders. Asset owners are rated from AAA through to D grade, with an additional X category for those asset owners that appear to be doing absolutely nothing to manage climate risk.

Disclosure / Points awarded for making the survey response public.

Performance / Points awarded for implementing elements of climate change best practice