Portfolio alignment: How it influences decision making

Portfolio alignment is a hot topic and key area of focus for the TCFD review and COP26 private finance team. But what is it really telling us and how will it influence investment decisions? This session looked at the unintended consequences of the portfolio alignment metric, and how investors can incorporate forward-looking views into their analysis and how it affects investment decisions.[vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Eva%20Cairns%22%2C%22job_role%22%3A%22Head%20of%20climate%20change%20strategy%2C%20Aberdeen%20Standard%20Investments%20(United%20Kingdom)%20%22%2C%22content%22%3A%22Eva%20Cairns%20is%20the%20Head%20of%20Climate%20Change%20Strategy%20at%20Aberdeen%20Standard%20Investments%20and%20responsible%20for%20leading%20ASI%E2%80%99s%20climate%20change%20agenda%20to%20ensure%20a%20consistent%20and%20rigorous%20climate%20change%20approach%20is%20applied%20to%20our%20investments%2C%20solutions%20and%20communications.%20Eva%20leads%20the%20internal%20cross-asset%20class%20Climate%20Change%20Strategy%20Group%20and%20is%20responsible%20for%20TCFD%20reporting.%20She%20has%20published%20a%20number%20of%20climate%20related%20papers%20including%20%E2%80%98Investing%20in%20a%20changing%20climate%E2%80%99%2C%20%E2%80%98Climate%20change%20%E2%80%93%20Our%20approach%20Investments%E2%80%99%20and%20more%20recently%2C%20she%20co-authored%20ASI%E2%80%99s%20climate%20scenario%20analysis%20white%20paper.%20Eva%20joined%20Standard%20Life%20Investments%20in%202010%20from%20Halcrow%20Group%20Ltd%20(now%20CH2M%20Hill)%2C%20a%20global%20engineering%20consultancy%2C%20where%20she%20worked%20as%20an%20Economist%20focused%20on%20environmental%20and%20socio-economic%20impact%20assessment%20of%20energy%20and%20transport%20projects.%20Eva%20graduated%20with%20an%20MSc%20in%20Economics%20with%20Distinction%20from%20the%20University%20of%20Edinburgh%20where%20her%20dissertation%20focused%20on%20the%20social%20cost%20of%20carbon.%22%2C%22image%22%3A%2245802%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Feva-cairns-6713143%2F%22%7D%2C%7B%22name%22%3A%22Dominic%20Tighe%22%2C%22job_role%22%3A%22Policy%20advisor%2C%20COP26%20Private%20Finance%20Hub%20(United%20Kingdom)%22%2C%22content%22%3A%22Dominic%20Tighe%20is%20a%20policy%20advisor%20in%20the%20COP26%20Private%20Finance%20Hub%20at%20HMT.%20This%20is%20small%20team%20of%20people%20supporting%20Mark%20Carney%20in%20a%20mission%20to%20build%20a%20private%20finance%20system%20for%20net%20zero%2C%20and%20make%20climate%20change%20a%20part%20of%20every%20financial%20decision%2C%20in%20the%20lead%20up%20to%20the%20COP26%20summit%20in%20Glasgow.%5CnSince%20joining%20early%20this%20year%2C%20Tighe%20has%20advanced%20the%20work%20of%20the%20hub%20on%20portfolio%20alignment%20metrics%2C%20and%20is%20a%20co-author%20of%20the%20TCFD%20technical%20paper%20on%20portfolio%20alignment%20metrics.%5CnHe%20is%20now%20playing%20a%20leading%20role%20in%20the%20engagement%20around%20the%20work%2C%20coordinating%20talks%20with%20industry%2C%20academia%2C%20policy%20makers%20and%20industry.%20He%20has%20spoken%20at%20numerous%20events%20to%20promote%20the%20use%20of%20alignment%20metrics%20including%20at%20the%20World%20Bank%2C%20UNFCC%20and%20NGFS.%5CnPrior%20to%20joining%20the%20Hub%2C%20Tighe%20worked%20at%20the%20Bank%20of%20England%2C%20initially%20in%20data%20analytics%20and%20later%20on%20the%20policy%20around%20%E2%80%98too%20big%20to%20fail%E2%80%99.%20He%20completed%20an%20MSc%20in%20Central%20Banking%20%26%20Financial%20Regulation%20from%20Warwick%20Business%20School%20during%20his%20time%20at%20the%20Bank%20of%20England%2C%20with%20his%20dissertation%20research%20on%20the%20green%20bond%20market.%22%2C%22image%22%3A%2245803%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fdominic-tighe-b94a5153%2F%22%7D%2C%7B%22name%22%3A%22Adam%20Matthews%22%2C%22job_role%22%3A%22Co-chair%2C%20Transition%20Pathway%20Initiative%3B%20director%20of%20ethics%20and%20engagement%2C%20Church%20of%20England%20Pensions%20Board%20(United%20Kingdom)%22%2C%22content%22%3A%22Adam%20is%20the%20director%20of%20ethics%20and%20engagement%20for%20the%20Church%20of%20England%20Pensions%20Board%2C%20as%20well%20as%20co-chair%20of%20the%20Transition%20Pathway%20Initiative%20and%20a%20board%20member%20of%20the%20Institutional%20Investors%20Group%20on%20Climate%20Change%2C%20(IIGCC).%20He%20is%20also%20the%20co-lead%2C%20on%20behalf%20of%20CA100%2B%2C%20for%20engagement%20with%20Royal%20Dutch%20Shell%20that%20led%20to%20the%202018%20joint%20statement%20on%20climate%20targets%20agreed%20between%20Shell%20and%20institutional%20investors.%5CnHe%20founded%20and%20now%20co-chairs%20the%20Transition%20Pathway%20Initiative%20(TPI)%20an%20asset%20owner-led%20and%20asset%20manager-supported%20global%20initiative%20which%20assesses%20companies%E2%80%99%20preparedness%20for%20the%20transition%20to%20the%20low%20carbon%20economy%20(and%20publishes%20this%20through%20the%20London%20School%20of%20Economics).%20He%20is%20also%20the%20lead%20for%20the%20Church%20of%20England%20on%20the%20Mining%20and%20Faith%20Reflections%20Initiative%20(MFRI)%20a%20forum%20that%20convenes%20dialogue%20between%20mining%20company%20CEO%E2%80%99s%20and%20Church%20leaders.%5CnMatthews%20also%20serves%20as%20a%20member%20of%20the%20Royal%20College%20of%20Physicians%20investment%20advisory%20board%20and%20on%20the%20Pension%20and%20Lifetime%20Savings%20Association%20(PLSA)%20stewardship%20advisory%20group.%22%2C%22image%22%3A%2245804%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fadam-matthews-84926b31%2F%22%7D%5D” title=”Speakers” el_class=””][vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Amanda%20White%22%2C%22job_role%22%3A%22Director%20of%20institutional%20content%2C%20Conexus%20Financial%20%20(Australia)%22%2C%22content%22%3A%22White%20is%20responsible%20for%20the%20content%20across%20all%20Conexus%20Financial%E2%80%99s%20institutional%20media%20and%20events.%20She%20is%20responsible%20for%20directing%20the%20bi-annual%20Fiduciary%20Investors%20Symposium%20which%20challenges%20global%20investors%20on%20investment%20best%20practice%20and%20aims%20to%20place%20the%20responsibilities%20of%20investors%20in%20wider%20societal%2C%20and%20political%20contexts%2C%20as%20well%20as%20promote%20the%20long-term%20stability%20of%20markets%20and%20sustainable%20retirement%20incomes.%20She%20is%20the%20editor%20of%20conexust1f.flywheelstaging.com%2C%20the%20online%20news%20and%20analysis%20site%20for%20the%20world%E2%80%99s%20largest%20institutional%20investors.%20White%20has%20been%20an%20investment%20journalist%20for%20more%20than%2020%20years%20and%20has%20edited%20industry%20journals%20including%20Investment%20%26%20Technology%2C%20Investor%20Weekly%20and%20MasterFunds%20Quarterly.%20She%20was%20previously%20editorial%20director%20of%20InvestorInfo%20and%20has%20worked%20as%20a%20freelance%20journalist%20for%20the%20Australian%20Financial%20Review%2C%20CFO%2C%20Asset%20and%20Asia%20Asset%20Management.%20She%20has%20a%20Bachelor%20of%20Economics%20from%20Sydney%20University%20and%20a%20Master%20of%20Arts%20in%20Journalism%20from%20the%20University%20of%20Technology%2C%20Sydney.%20She%20was%20previously%20a%20columnist%20for%20the%20Canadian%20publication%2C%20Corporate%20Knights%2C%20which%20is%20distributed%20by%20the%20Globe%20and%20Mail%20and%20The%20Washington%20Post.%20White%20is%20currently%20a%20fellow%20in%20the%20Finance%20Leaders%20Fellowship%20at%20the%20Aspen%20Institute.%20The%20two-year%20program%20consists%20of%2022%20fellows%20and%20seeks%20to%20develop%20the%20next%20generation%20of%20responsible%2C%20community-spirited%20leaders%20in%20the%20global%20finance%20industry.%22%2C%22image%22%3A%2245805%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Famanda-white-101a7515%2F%3ForiginalSubdomain%3Dau%22%7D%5D” title=”Moderator” el_class=””][vc_empty_space height=”10px”]

Editorial coverage

Editorial Content

Inflation is coming. Time to act

[vc_empty_space height=”10px”]

Related reading

Investing for Net Zero

Climate scenario analysis – a unique investment framework

[vc_empty_space height=”10px”]

Key takeaways

  • xxx
  • xxx
  • xxx
  • xxx
[vc_empty_space height=”10px”]

Unanswered questions and answers

[vc_empty_space height=”10px”]

Poll results

To follow[vc_line_chart]

Sponsored Content

Leave a Comment

America’s net zero opportunity

America’s net zero opportunity

Research from Princeton University plots a Blueprint for how the US can achieve net zero emissions in the next decade showing the key is overcoming execution challenges including the infrastructure deployment and the mobilisation of capital and labour.

Sort content by

Scenario analysis and investment strategy – the risks of climate

Scenario analysis shows that the ability of pension funds to pay their pensions will be severely impacted by climate.

Impact investing at a total portfolio level

This conversation explored how global institutional investors are approaching the challenge of balancing financial and impact goals.

SEC chair Gensler in favour of mandatory climate disclosure

SEC chair Gary Gensler is in favour of the regulator stepping in to bring greater clarity and consistency to corporate climate disclosure. Speaking at a PRI webinar he said the current level of disclosure doesn’t allow investors to compare corporate climate preparedness, and that much of the data is inconsistent. 

Finding alpha: Church Commissioners outperform

The £9.2 billion portfolio managed for the Church Commissioners for England has returned 9.7 per cent over 10 years through a focus on sustainability and a willingness to try things early, such as forestry and venture capital. Amanda White spoke to CIO Tom Joy about where the fund looks for alpha and the need for a non-traditional allocation.

Asset owners apply pressure on managers for net zero integration

The David Rockefeller Fund and Wespath Institutional Investors explain how they are engaging managers, and holding them to account, in the drive to net zero integration.

CalSTRS outperforms in every asset class

CalSTRS outperformed its custom benchmark in every single asset class  to deliver a historic fund performance of 27.2 per cent for the year. Amanda White spoke to CIO, Chris Ailman.

Previous