Building a Climate-Aware Portfolio

Building a Climate-Aware Portfolio

SEP 20, 2022

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Companies that adapt for the low-carbon future are ahead of the game.

In the investing world, climate change has quickly catapulted from a fringe concern to a top consideration. Many countries, including the U.S., have committed to net-zero carbon emissions by 2050, and regulators are pushing companies to lower their carbon footprints. The Inflation Reduction Act, which passed in August, could encourage more than $300 billion in climate and clean energy investment. This massive transition is creating opportunities for investors to invest in renewable energy and technology enabling more energy-efficient construction and transportation. “Investors that weren’t thinking about the physical or transitional risks that come with climate change five years ago are now leading with it in our discussions,” says Jim Landau, head of environmental, social and governance, real estate and agricultural finance at MetLife Investment Management (MIM).