Resources aimed at increasing investor education and awareness on climate change have proliferated as the topic has grown in importance in recent years. On this page, we highlight a range, by no means exhaustive, of key resources in this area, produced by both the PRI and external authors. A selection of these resources is contextualised across the investment lifecycle for direct and indirect investors in our guide Incorporating Climate Change in Private Markets.
Discussion papers & Reports
| Title | Description | Organisation | Asset Class |
|---|---|---|---|
| A toolkit to help investors, lenders and regulators address the financial implications of climate change | A toolkit to help investors, lenders and regulators address the financial implications of climate change | Imperial College Business School | Agnostic |
| A call to action to private market asset managers | This paper sets out clear expectations for private markets asset managers from members of the Net Zero Asset Owners Alliance to align their investments with a 1.5C pathway. | NZAOA | Private markets |
| A case for net zero in private equity | This guidance provides an overview of the TCFD recommendations and considerations specific to the PE business model, case studies of PE firms of various sizes making progress towards decarbonisation, and practical tools to drive implementation. | iCI / Indefi | Private equity |
| Breaking Down Real Estate Net-Zero Targets | This report outlines an approach to evaluating real estate funds’ and companies’ decarbonization and net-zero commitments and targets. | MSCI | Real estate |
| Climate data and net zero: Closing the gap on investors’ data needs | Investors need robust and reliable climate data to deliver and credibly report on their net zero commitments. However, there are gaps in the data currently available. This report explores where those gaps are and looks at what action could be taken by data providers and other stakeholders to build a data ecosystem that meets investor needs. | PRI | Agnostic |
| Climate risks in the real estate sector | This resource is part of a series of briefing notes that cover major economic sectors and their associated climate risks. | UNEP FI | Real estate |
|
Enabling private investment in climate adaptation & resilience. |
This report provides an overview of the current state of private sector investment in adaptation and resilience and the known barriers to such investment, then proposes a pragmatic Blueprint for Action for public and private stakeholders. It identifies five key entry points as well as ways to create an enabling environment and illustrates each point with case studies. | World Bank and Global Facility for Disaster Reduction and Recovery (GFDRR) | |
| ESG incorporation in direct lending: A guide for private debt investors | Based on signatory feedback, this report is a significant and timely update on the responsible investment and private debt landscape that has changed materially. Covering data, sustainability-linked loans, and collaboration, it also lays out some calls to action for the sector.The report is focused around three key themes: (1) improvements to ESG data, (2) engagement and sustainability-linked loans, and (3) climate risks and targets. | PRI | Private debt |
| Getting private investment in adaptation to work: Effective adaptation, value and cash flows | The paper discusses the role of private investment in systemic adaptation to environmental changes. | Science Direct | |
| Pathways to Net Zero Carbon Emissions in International Real Estate Investment | This paper provides an overview of a set of major net zero schemes relevant to the real estate investment industry and the issues surrounding their use and application in transitioning the global real estate sector to NZC emissions. | Investment Property Forum | Real estate |
| Risk and Resilience – Addressing physical climate risks in infrastructure investment | This report explains the case for building resilience to physical climate risks into infrastructure investments, and details the CCRI’s mandate and operating framework, including working groups and deliverables. | The Coalition for Climate Resilient Investment (CCRI) | Infrastructure |
| The Alignment Cookbook: A technical review of methodologies assessing a portfolio’s alignment with low-carbon trajectories or temperature goal | This report explains how methodologies which seek to align portfolio with climate goals (such as the Paris agreement) are developed, and explores some key considerations for investors looking to implement said methodologies. | Institut Louis Bachelier | |
| The Inevitable Policy Response | The IPR is an initiative commissioned by the PRI to advance the investment industry’s knowledge of climate transition (policy) risks, and to support investors’ efforts to incorporate climate risks into their portfolio assessments. Outputs from the programme include the IPR Policy Forecast, the IPR 1.5C Scenario, and the IPR Value Drivers - a suite of analysis and tools that allow investors to understand likely policy actions in all regions in response to climate change and their implications for the real economy. | PRI | Agnostic |
| Why a just transition is crucial for effective climate action | This discussion paper unpacks the just transition into its various elements and explores its implications for the IPR forecast. The paper includes examples and some key principles for sound just transition policy development. Institutional investors are highlighted as playing a key role in the just transition. | Vivid Economics | Agnostic |
Technical guides
| Title | Description | Organisation | Asset Class |
|---|---|---|---|
| TCFD Implementation Considerations for Private Equity | This guidance provides an overview of the TCFD recommendations and considerations specific to the PE business model, case studies of PE firms of various sizes making progress towards decarbonisation, and practical tools to drive implementation. | iCI / KPMG / BVCA | Private equity |
| A guide on climate change for private equity investors | This guide includes two sections: Section 1 summarises the rationale for incorporating climate change concerns in private equity investments; Section 2 presents a framework that Limited Partners (LPs) and General Partners (GPs) can use in due diligence and when engaging with their fund and portfolio company investments. | PRI / IIGCC | Private equity |
| Climate change for asset owners | This starter guide introduces the topic of climate change to asset owners. It aims to explain the importance and relevance of climate change in the context of the investment process and to outline how asset owners might incorporate this into responsible investment policies, investment processes and stewardship practices. | PRI | Agnostic |
| Green House Gas Accounting and reporting for the private equity sector | This guidance explains the principles for GHG emissions data collection and the methodologies for calculating emissions at fund level and firm level for reporting to LPs and other stakeholders. | iCI/ERM | Private Equity |
| The changing climate for private equity | Outlines the direction of the private equity sector with respect to climate. Explains the drivers supporting climate action, the obstacles, and the emerging solutions. | CERES / ERM | Private equity |
| Climate change and the just transition: A guide for investor action | This guide sets out how investors can pursue the goal of a just transition as part of their core operating practices, trough five areas for action (Investment strategy; corporate engagement; capital allocation; policy advocacy and partnership; learning and review). | London School of Economics and Political Science - Grantham Research Institute on Climate Change and the Environment | Agnostic |
| Changing course: real estate - TCFD pilot project report and investor guide to scenario-based climate risk assessment in real estate portfolios | A report exploring how to apply a scenario-based climate risk assessment methodology to a real estate portfolio, and analyse how the resulting quantitative metrics could improve investment decisions. | UNEP FI | Real estate |
| Climate change guide | This guide provides private equity investors with practical tools and guidelines for integrating climate-related risks and opportunities across the different stages of the investment process. Full guidance available to InvestEurope members only. | Invest Europe | Private equity |
| Climate change mitigation and your portfolio: Practical tools for investors | This report provides suggested steps for investors to conduct credible scenario analysis in line with 1.5C decarbonisation pathways, and explores high-level implications for investors of such pathways | Investor Leadership Network | Agnostic |
| Climate Lens | The Climate Lens is an assessment framework developed by Infrastructure Canada in 2018. It helps decision-makers understand the climate change risks and impacts associated with the design, construction and operation of large infrastructure projects in Canada | Infrastructure Canada | Infrastructure |
| The ClimateWise Physical Risk Framework | The ClimateWise Physical Risk Framework demonstrates how the expertise and tools of the insurance industry can support other parts of the financial system to understand their physical risk exposure. The framework offers real estate investors and lenders a means of understanding the potential physical risks of climate change on their portfolios. | Cambridge Institute for Sustainability Leadership - ClimateWise | Real estate |
| The ClimateWise Transition Risk Framework | The ClimateWise Transition Risk Framework provides an open-source, step-by-step methodology on how to manage the risks and capture emerging opportunities from the low carbon transition. The framework is designed to help investors assess the breadth of asset types exposed to transition risk at portfolio level, define the potential financial impact of the low carbon transition down to asset level and incorporate transition impacts into asset financial models. | Cambridge Institute for Sustainability Leadership - ClimateWise | Infrastructure |
| Developing an Asset Owner Cimate Change Strategy | This guide details a recommended a 3-step framework for asset owners to develop an effective climate change strategy. The three steps are Measure (your portfolio exposure); Act (through your investment decisions and stewardship activities); and Review (by monitoring and reporting progress). The guide also includes case studies from signatories on their approach to different climate considerations in their investment strategies. | PRI | Agnostic |
| Financial Sector Science-Based Targets Guidance | The SBTi framework for financial institutions supports FIs to address climate change by providing resources for SBT setting. The framework includes target setting methods, criteria, a target setting tool, and this guidance document. | SBTi | Financial instiutions |
| How to Invest in the Low-Carbon Economy: An Institutional Investors' Guide | Focusing largely on investment allocations, this guide outlines some of the key options and strategies available to institutional investors to invest in a low-carbon economy, as well as an introduction to climate risk and opportunity assessment and scenario analysis. | PRI | Agnostic |
| How to Set Up Effective Climate Governance on Corporate Boards Guiding principles and questions (PDF) | Practical guidance for organisations to assess their approach to board governance of climate issues. Eight broadly-applicable principles for effective climate governance at the organisation level are introduced. This guidance builds on existing corporate governance frameworks, including the ICGN Global Governance Principles and the TCFD. | World Economic Forum | Agnostic |
| Implementing the Task Force on Climate-Related Financial Disclosures (TCFD) Recommendations - A Guide For Asset Owners | This guide provides tools and resources for asset owners to implement the recommendations of the Taskforce for Climate-related Financial Disclosures (TCFD), covering each of the four main pillars of the TCFD: Governance, Strategy, Risk Management and Metrics and Targets. The guide also includes consideration of the main drivers for asset owners to take action on climate change, and implement the TCFD recommendations specifically, as well as guidance on conducting climate scenario analysis. | PRI | Agnostic |
| Integrating climate change into governance and risk management | This guidance developed by CDC provides Financial Institutions (FIs) with practical steps on incorporating climate change considerations into their decision-making. It includes information on how climate change can drive financial risks to an FI, as well as guidance on how to implement the TCFD recommendations. | CDC | Financial institutions |
| Net Zero Investment Framework: Implementation guide | The Net Zero Investment Framework 1.0 provides a basis on which a broad range of investors can make net-zero commitments and define strategies, measure alignment, and transition portfolios. | IIGCC | Agnostic |
| The Oxford Principles for Net-Zero Aligned Carbon Offsetting | Illustrates the four key elements to credible net zero aligned offsetting, according to the multidisciplinary team from the University of Oxford | University of Oxford | Agnostic |
| Private Equity Sector Science-Based Target Guidance | This Guidance supports PE firms’ GPs to set ambitious greenhouse gas (GHG) emissions reduction targets (SBTs) for their operations (scope 1 and 2 emissions) and firm-level portfolio SBTs for their investment and lending activities (scope 3, category 15). | Science Based Targets initiative | Private equity |
| Sustainable real estate investment: Implementing the Paris Climate agreement - an action framework | This framework sets out the measures and actions needed to support the integration of ESG and climate risks into the business of real estate investment and management. It provides a summary of the key steps in the investment process, must-do actions and recommended resources to guide real estate investors and their advisers throughout the entire lifecycle of a real estate investment portfolio. | UNEP FI | Real estate |
| TCFD implementation: Practical Insights and Perspectives from Behind the Scenes for Institutional Investors | A report detailing practical examples and experiences of several asset owners and investment managers in implementing the recommendations of the Taskforce for Climate-related Financial Disclosures | Investor Leadership Network | Agnostic |
| TCFD for private equity general partners: technical guide | This guide provides private equity investors with suggested tools, resources and investor examples to support their implementation of the four pillars of the recommendations of the Taskforce for Climate-related Financial Disclosure (TCFD): governance, strategy, risk management and metrics and targets. The guide also includes consideration of the business case for private equity investors to take action on climate change. | PRI | Private equity |
| Technical guide: TCFD for real assets investors | This guide provides real assets investors with suggested tools, resources and investor examples to support their implementation of the four pillars of the recommendations of the Taskforce for Climate-related Financial Disclosure (TCFD): governance, strategy, risk management and metrics and targets. The guide also includes consideration of the business case for real assets investors to take action on climate change. | PRI | Infrastructure / real estate |
Metrics & standards
| Title | Description | Organisation | Asset Class |
|---|---|---|---|
| Advancing TCFD guidance on physical climate risks and opportunities | This report sets forth recommendations, primarily targeted at corporations, to lay the foundations for a common conceptual framework and a standard set of metrics for reporting physical climate risks and opportunities. This guidance is concerned with standardisation around metrics for physical climate risk management and disclosures; metrics for climate resilience opportunities; and climate intelligence for business strategy and financial planning. | PRI / IIGCC | Private equity |
| Climate Resilient Infrastructure - Policy Perspectives | This report highlights emerging good practices in climate resilient infrastructure and remaining challenges across OECD and G20 countries. It provides non-prescriptive guidance to countries as they seek to enhance resilience in line with their national circumstances and priorities | OECD | Infrastructure |
| EU Taxonomy | The EU taxonomy for sustainable activities is an output of the European Commission’s action plan on financing sustainable growth, published in March 2018. It is a classification system, establishing a list of environmentally sustainable economic activities. | European Commission | |
| The Global GHG Accounting and Reporting Standard for the Financial Industry | A globally accepted standard for the measurement and disclosure of financed emissions. | Partnership for Carbon Accounting Financials (PCAF) | Financial institutions |
| TCFD recommendations | The TCFD provides guidance to financial institutions on how to disclose climate-related financial information through a set of voluntary and consistent recommendations. These are structured around four thematic areas: governance, strategy, risk management, and metrics and targets. | Task force on Climate-related Financial Disclosures | Agnostic |
Frameworks & tools
| Title | Description | Organisation | Asset Class |
|---|---|---|---|
| Beyond the Horizon: New Tools and Frameworks for Transition Risk Assessments | Thirty-nine global financial institutions from six continents participated in UNEP FI’s second TCFD banking programme. Through this yearlong engagement, the participating banks collaborated with climate risk experts and each other to improve financial assessments of transition risk. In doing so, these banks built on the industry-leading transition risk methodology developed by UNEP FI and Oliver Wyman in the first TCFD banking program. | UNEP FI | Agnostic |
| Managing climate risks and impacts through due diligence for responsible business conduct | This report explores how institutional investors can apply risk-based due diligence as recommended by the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct and help them prevent and mitigate adverse climate impacts associated with their investee companies on society and the environment. It provides practical recommendations on how to conduct due diligence as a way to connect climate commitments at portfolio level with real-economy impacts and draws on other frameworks and tools for assessing, managing or disclosing climate impacts associated with investments. | OECD | Agnostic |
| The Global GHG Accounting & Reporting Standard for the Financial Industry | A global partnership of financial institutions that is developing a harmonised approach to assess and disclose carbon emissions associated with their loans and investments. | Partnership for Carbon Accounting Financials | Agnostic |
| The Paris Agreement Capital Transition Assessment (PACTA) | The Paris Agreement Capital Transition Assessment (PACTA) is a free, open-source methodology and tool, which measures financial portfolios' alignment with various climate scenarios consistent with the Paris Agreement. | The 2° Investing Initiative (2DII) | Listed equity / coporate bonds |
| PAII Net Zero Investment Framework | The framework is an output of the Paris Aligned Investment Initiative (PAII), a collaboration involving over 70 asset owners and asset managers with more than $16 trillion in assets, led by IIGCC. The PAII aims to provide consensus on objectives and a clear, transparent set of best practice approaches and actions to enable Paris-aligned/net-zero investment portfolios relevant for both asset managers and asset owners. | IIGCC | |
| The EU Taxonomy | The EU taxonomy for sustainable activities is an output of the European Commission’s action plan on financing sustainable growth, published in March 2018. It is a classification system, establishing a list of environmentally sustainable economic activities. | European Commission | |
| Carbon Risk Real Estate Monitor (CRREM) Risk Assessment Tool | CRREM aims at developing a tool that allows investors and property owners to assess the exposition of their assets to stranding risks based on energy and emission data and the analysis of regulatory requirements. By setting science-based carbon reduction pathways, CRREM faces the challenge to estimate risk and uncertainty associated to commercial real estate de-carbonization, building a methodological body and empirically quantify the different scenarios and their impact on the investor portfolios. | Carbon Risk Real Estate Monitor (CRREM) | Real estate |
| SASB Materiality Map | SASB’s Materiality Map identifies sustainability issues that are likely to affect the financial condition or operating performance of companies within an industry. One of the issues included in the tool is greenhouse gas emissions. | Sustainability Accounting Standards Board (SASB) | |
| The TPI Tool | An asset-owner led initiative which assesses companies’ preparedness for the transition to a net-zero economy. The TPI data also underpins the CA100+ Net Zero Company Benchmark. | Transition Pathway Initiative (TPI) | Listed equity |
| NZAOA Target Setting Protocol | The updated protocol sets out the Alliance’s four-pillar approach to target setting and reporting for the period 2020 to 2025, with specific consideration sfor Real Estate, Infrastructure and Private Equity. | Net Zero Asset Owner Alliance | Agnostic |
| Investor Climate Action Plans | The Investor Climate Action Plans (ICAPs) Expectations Ladder and Guidance provide investors with clear expectations for issuing and implementing comprehensive climate action plans, including steps investors can take to support the goal of a net-zero emissions economy by 2050 or sooner. | The Investor Agenda | |
| The Net Zero Carbon Buildings Commitment | This initiative was launched by the World Green Building Council (WorldGBC) to push for net zero carbon buildings around the world. By formalising their participation, businesses commit to having all their assets reach net zero carbon in operation by 2030, as well as advocating for net zero carbon buildings by 2050. | World Green Buildings Council | Real estate |
| CDP (Various frameworks) | The project runs a global environmental disclosure system that allows companies, cities, states, regions and investors to report their environmental impact. | CDP | |
| GRESB (Various frameworks) | GRESB assesses and benchmarks the Environmental, Social and Governance (ESG) and other related performance of real assets, providing standardised and validated data to the capital markets. | GRESB: The global ESG benchmark for financial markets | Real estate & Infrastructure |
| The PRI reporting and assessment framework | PRI signatories are required to report on their responsible investment activities annually, using the PRI’s Reporting & Assessment Framework. This online tool comprises five overall modules, and six covering specific asset classes. | Principles for Responsible Investment | |
| Greenhouse Gas Protocol Standards (Various) | GHG Protocol establishes comprehensive global standardized frameworks to measure and manage greenhouse gas (GHG) emissions from private and public sector operations, value chains and mitigation actions. | Greenhouse Gas Protocol | Agnostic |
| The Sustainable Development Goals (SDGs) | The Sustainable Development Goals (SDGs) were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity. The 17 SDGs are integrated—they recognize that action in one area will affect outcomes in others, and that development must balance social, economic and environmental sustainability. | United Nations | Agnostic |
| ILPA ESG Assessment Framework | ILPA's ESG Assessment Framework is designed to help limited partners evaluate and benchmark general partner (GP) responses to due diligence efforts, inform goal-setting conversations with GPs and measure ESG integration progress over time. | Institutional Limited Partners Association (ILPA) | Private equity |
| Climate Bonds Standard and Certification Scheme | The Climate Bonds Standard and Certification Scheme is a labelling scheme for bonds and loans. Rigorous scientific criteria ensure that bonds and loans with Certification, are consistent with the 2 degrees Celsius warming limit in the Paris Agreement. The Scheme is used globally by bond issuers, governments, investors and the financial markets to prioritise investments which genuinely contribute to addressing climate change. | Climate Bonds Initiative | |
| CDSB Framework | The CDSB Framework sets out an approach to reporting environmental information in mainstream reports. Companies reporting according to this TCFD-aligned framework provide investors with decision-useful environmental information. | Climate Disclosure Standards Board | |
| ESG indicators - Impact platform | Impact is a service provided by the French Secretariat of State for the Social, Solidarity and Responsible Economy and the General Department of Companies. The platform includes a set of 47 ESG indicators which companies can choose to report against. | Impact Platform (la plateforme Impact) | |
| The Inevitable Policy Response | A pioneering project launched by the PRI, which aims to prepare investors for the risks to their investments posed by an abrupt and disruptive near-term policy response to climate change. | PRI | Agnostic |
| The Science Based Targets Initiative (SBTi) | A partnership between CDP, the UN Global Compact, the World Resources Institute and the World Wide Fund for Nature. It has, thus far, mostly focused on non-financial corporates, helping companies set emissions targets that are in line with holding global warming to well below 2°C above pre-industrial levels. | ||
| Climate Disclosures Standards Board (CDSB) | CSDB is an international consortium of business and environmental NGOs committed to enhancing the global mainstream corporate reporting model by advocating for the provision of information about business’ use of and effect on natural capital. | ||
| COP26 Private Finance Hub | The Private Finance Hub supports Mark Carney in his capacity as the Prime Minister’s Finance Adviser for COP26. Dr Carney launched the Private Finance Strategy to build a framework to ensure that every professional decision takes climate change into account. | United Nations | |
| The Taskforce on Climate-related Financial Disclosures (TCFD) | The G20’s Financial Stability Board set up the Task Force on Climate-related Financial Disclosures (TCFD) in 2015 to help identify the information needed by investors, lenders and insurers to appropriately assess and price climate risk and opportunity. | The Taskforce on Climate-related Financial Disclosures (TCFD) | Agnostic |
| Guidance for Infrastructure Assets: Complement to the Net Zero Investment Framework | This guidance expands the IIGCC's Net Zero Investment Framework by providing methodologies and approaches for the alignment of infrastructure portfolios towards the goal of achieving global net zero emissions by 2050 or sooner. | IIGCC | Infrastructure |
| Valuing Carbon in Private Markets | A guide for private markets GPs and LPs to consider incorporation of carbon costs and opportunities into the entire investment decision-making process. The guide includes a framework, potential methodologies, and case studies to help illustrate how being proactive on carbon reduction can be good for business. | The Sustainable Markets Initiative | Private Markets |
Other
| Title | Description | Organisation | Asset Class |
|---|---|---|---|
| Venture Climate Alliance | The Venture Climate Alliance is made up of a growing group of leading VCs committed to achieving a rapid, global transition to net zero or negative greenhouse gas emissions by 2050 or earlier. Members will work to achieve net zero emissions for our operations by 2030 or sooner, and will encourage our portfolio companies to set their own net zero targets. | Venture Climate Alliance | Venture capital |
| TCFD Knowledge Hub | A collection of resources about climate-related financial disclosures, including guides, case studies, and research. | TCFD | Agnostic |
| Call to Action to Private Market Asset Managers | This call to action for private markets asset managers outlines actions for managers in different asset classes to take to support the acceleration of climate efforts in private markets. It also highlights relevant initiatives that asset managers should consider joining to support the transition to a net-zero economy. | AOA | Private markets |
If you know of relevant resources for the Climate Hub, contact us to make a submission. Once submitted, the resource goes through a moderation process to ensure each resource is relevant and accurate for publication.
