Climate change represents a unique challenge to asset owners and their ability to manage global, cross-sectoral, systemic risks. It demands change management across every function of a fund.
Many asset owners have already acknowledged the need to build capacity and challenge traditional industry practices in order to manage climate change. However, there has so far been little information to inform the market on what constitutes best practice let alone to enable consumers to differentiate between funds.
It is against this background that Asset Owners Disclosure Project (AODP) operates its Global Climate Index, so that stakeholders of all kinds, including the beneficiaries themselves, can see which funds are leading and which are lagging - providing data that is critical to the efficient operation of the market.