Investors have grown increasingly more sophisticated when it comes to understanding of the risks and opportunities arising from climate change. So have their approaches to capturing these aspects of climate change in their portfolios. The market has taken evolutionary steps as it has developed from relatively simple risk-based implementation options—such as creating "ex fossil fuel" or "low carbon" portfolios—to approaches that also capture the potential upside from the transition to a low carbon economy, e.g. via increased exposure to the global green economy.
Up to now, the missing piece has been a robust, data driven approach to capturing the forward-looking aspects of corporate efforts to adjust their businesses for the climate transition.