Asset management | green and sustainable finance, ESG investing, and climate risk

The lecture titled “Asset Management: Green and Sustainable Finance, ESG Investing, and Climate Risk” by Thierry Roncalli from the University of Paris-Saclay, January 2021, discusses critical aspects of integrating Environmental, Social, and Governance (ESG) factors into financial management and investment. Below is an overview of the likely content based on the title and subject matter:

1. Green and Sustainable Finance
   • Definition and objectives of green and sustainable finance.
   • Differences between green finance (environment-focused) and sustainable finance (broader ESG focus).
   • Role in mitigating climate change and achieving the Sustainable Development Goals (SDGs).
   • Examples of green financial instruments: green bonds, sustainability-linked loans, and carbon credits.
2. ESG Investing
   • The principles of ESG investing and its evolution in financial markets.
   • ESG integration strategies:
     • Screening (negative and positive).
     • Best-in-class approaches.
     • Active ownership and engagement.
   • Performance implications of ESG factors in investment portfolios.
   • Measurement and reporting of ESG metrics.
3. Climate Risk in Asset Management
   • Types of climate risks:
     • Physical risks: Impacts of climate change like extreme weather events.
     • Transition risks: Policy, market, and technology shifts during the move to a low-carbon economy.
   • How asset managers assess and address these risks in portfolios.
   • Use of climate models and scenario analysis in risk management.
   • Importance of regulatory frameworks, such as the Task Force on Climate-related Financial Disclosures (TCFD).
4. Case Studies and Practical Examples
   • Applications of ESG principles in real-world investment strategies.
   • Trends and innovations in green finance (e.g., renewable energy investments).
5. Challenges and Opportunities
   • Barriers to mainstream adoption of ESG investing (e.g., data reliability, greenwashing).
   • Future opportunities in sustainable finance driven by climate action and regulatory mandates.

If you’d like specific slides, detailed insights, or clarifications, you might refer directly to Thierry Roncalli’s materials or publications associated with this lecture, as he is a recognized expert in the fields of finance, quantitative investment strategies, and sustainable finance.

source :

https://www.researchgate.net/publication/348603107_Green_and_Sustainable_Finance_ESG_Investing_and_Climate_Risk