Decarbonizing Long-term Portfolios

32 Pages Posted: 27 Apr 2022

See all articles by Ariel Fromer Babcock

Ariel Fromer Babcock

Fidelity Investments, Inc.

Matthew Leatherman

affiliation not provided to SSRN

Date Written: April 11, 2022


Climate change is altering the dynamics of investing by posing meaningful risk while also offering substantial new opportunities for growth and investment. An adaptable, top-down approach to decarbonization provides long-term investors with multiple levers for addressing climate risk inside their investment portfolios while fulfilling their mandates and capitalizing on new opportunities. In this report, we offer resources to guide investors in applying the appropriate combination of top-down decarbonization strategies across their portfolios while integrating decarbonization objectives into investment beliefs, risk appetite statements, and investment mandates.

Keywords: climate change, long term portfolios, net zero, investment portfolios, decarbonization, decarbonisation

JEL Classification: D03, G02, G12, G23

Suggested Citation

Babcock, Ariel and Leatherman, Matthew, Decarbonizing Long-term Portfolios (April 11, 2022). Available at SSRN: or

Ariel Babcock (Contact Author)

Fidelity Investments, Inc. ( email )

United States

Matthew Leatherman

affiliation not provided to SSRN

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