Trajectory Monitoring in Portfolio Management and Issuer Intentionality Scoring

45 Pages Posted: 10 Jul 2020

See all articles by Théo Le Guenedal

Théo Le Guenedal

CREST - ENSAE

Julien Girault

Amundi Asset Management

Mathieu Jouanneau

Amundi Asset Management

Frederic Lepetit

Amundi Asset Management

Takaya Sekine

Amundi Asset Management

Date Written: May 28, 2020

Abstract

Two-degrees alignment has become a major issue for climate-aware portfolio management. There are sophisticated initiatives aiming to predict corporate emission intensities from 2030 up to 2100. In this paper, we focus on the significance of the ‘current policy scenario’, where corporates would simply stay on their current trajectories for their emission intensities. UNEP has illustrated how far the global current policy scenario is from a global two-degrees scenario. We want to understand this ‘current policy scenario’, broken down asset-by-asset within the significant emission sectors, and from a global index point of view. We will address choices of emission intensity metrics and of weighting schemes. Enabling the low-carbon transition while maintaining a long-term focus in investment decision-making is a relevant approach. In this paper, we intend to illustrate the virtue of the long-term choice with a simple three-year observation gap in the power generation sector’s intensities. To complement our ‘current policy’, which focuses on the emissions track-record of firms, we illustrate a mosaic theory approach to quantifying the intentionality of a firm to green itself. Anticipating positive impacts requires that investors have identified their key questions for firms' intentions.

Keywords: Climate change, scenarios, trajectory, intentionality, decision tree

JEL Classification: G11, Q54, Q56

Suggested Citation

Le Guenedal, Théo and Girault, Julien and Jouanneau, Mathieu and Lepetit, Frederic and Sekine, Takaya, Trajectory Monitoring in Portfolio Management and Issuer Intentionality Scoring (May 28, 2020). Available at SSRN: https://ssrn.com/abstract=3630302 or http://dx.doi.org/10.2139/ssrn.3630302

Théo Le Guenedal

CREST - ENSAE ( email )

France

Julien Girault

Amundi Asset Management ( email )

90 Boulevard Pasteur
Paris, 75015
France

Mathieu Jouanneau

Amundi Asset Management ( email )

90 Boulevard Pasteur
Paris, 75015
France

Frederic Lepetit

Amundi Asset Management ( email )

90 Boulevard Pasteur
Paris, 75015
France

Takaya Sekine (Contact Author)

Amundi Asset Management ( email )

90 Boulevard Pasteur
Paris, 75015
France

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
47
Abstract Views
441
PlumX Metrics