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Taking the heat out of decarbonisation strategies – Acadian Asset Management

2022 has seen significant headwinds for many investors pursuing sustainability objectives.

Posted on Dec 02, 2022

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... In this piece, Acadian Asset Management compare a range of approaches to decarbonisation and show why combining a rich stock-selection model with sophisticated portfolio construction may durably improve financial outcomes while meeting decarbonisation objectives.

Neither exclusion-based approaches nor low-carbon benchmark tracking indexes incorporate a deliberate means of generating alpha.

Exclusion-based approaches tend to rely on industry allocation bets that generate substantial uncompensated risk.

In contrast, Acadian Asset Management show that combining a rich stock-selection model with sophisticated portfolio construction may durably improve financial outcomes while meeting decarbonisation objectives.

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