ESG & Sustainability — May 11, 2022

Holding the world in your portfolio and considering climate transition risks

The STOXX WTW Climate Transition Indices are a new approach to managing climate risk that offer investors a systematic and transparent way to incorporate climate transition risk into their investment decisions.

The index methodology leverages WTW’s proprietary Climate Transition Value at Risk (CTVaR) data to assess the anticipated impact of climate transition on company valuations as we move to a net zero economy.

The indices offer investors diversified equity exposure with the potential for enhanced returns over time and attractive sustainability characteristics. For investors seeking to manage climate transition risk, the STOXX WTW Climate Transition Indices may be used to replace existing equity allocations.

Author

Diana R. Baechle, PhD

Director, Applied Research