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Amid recent natural disasters and growing awareness, climate change has become a focus of social discourse, and we believe the ranks of market participants seeking solutions are growing. Many impact issuers contribute to environmental sustainability and help society better prepare for climate change. Here we share some of the environmental and climate-related innovations we are…
Author and financial commentator Nassim Taleb introduced the concept of black swans, rare occurrences — often macro or market shocks — viewed after the fact as obvious or bound to happen, but that were difficult to predict or prepare for. Carbon prices may be black-swan-like for their potentially substantial impact on markets coupled with a lack of collective preparation or understanding. Let’s call them green swans.
Carbon prices are costs, or taxes, placed on each metric ton of CO2 produced. The objective of a carbon price — derived via regulation or the market — is to…
The US Commodity Futures Trading Commission (CFTC) just released a report entitled “Managing Climate Risk in the U.S. Financial System.” The CFTC’s Climate-Related Market Risk Subcommittee, of which I am a member, began working on this project late last year. Our goal was to drive recommendations for mitigating and adapting to the physical and transition risks that climate change poses to financial markets.
The subcommittee’s 35 experts represent a range of industries, including financial markets, agricultural and energy markets, data and intelligence service providers, the environmental and sustainability public-interest sector, and academic disciplines. This disparate group voted unanimously to approve the release of the report.
Among the key findings for financial markets are that climate change poses a “major risk to the stability of the US financial system” and the American economy, and that the US should…
Meeting basic human needs like access to health care, affordable housing, clean water, and sustainable food sources may not seem like a compelling thesis for active investors seeking to outperform market indices. But we have found that disruptive impact issuers working to solve the world’s most pressing problems are often underappreciated market opportunities with…
Carbon emissions from the production and consumption of fossil fuels are the primary cause of climate change. Increasing atmospheric concentrations of greenhouse gasses (GHGs) are changing climate patterns, warming the earth’s surface, and exacerbating physical climate risks. Signatories of the 2016 Paris Agreement named reducing heat-trapping emissions as the most important step in reaching their goals. Since then, governments, companies, and market participants have been aiming to quantify, benchmark, and track emissions associated with their activities. Here we offer a high-level description of carbon emissions and describe industry efforts to standardize their…
The assumption that the planet needs to warm by an average of 2°C before heat becomes an issue obscures the risks of extreme heat. Abnormally high temperatures during heat waves or planting and harvest seasons can be devastating. According to projections, within the next few decades, numerous regions will experience many more days with average daytime temperatures over…
There are two types of climate-related financial risks: physical and transition. Physical risks refer to the manifestations of a changing climate that may be acute, like hurricanes, floods, or wildfires, or chronic, like water scarcity, sea-level rise, extreme heat, or worsening air quality. Transition risks are every bit as important to understand and may be just as costly to companies and investors over time. We’ll write a lot more about physical risks and our collaboration with Woods Hole Research Center in future posts, but for now, let’s break down transition risks.
As economies decarbonize to lower greenhouse gas (GHG) emissions and slow the global warming trend, companies will feel the effects of the “transition” to this lower-carbon world, presented with multifaceted financial pressures, as well as opportunities to…
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Hyperlinks
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Confidentiality and password security
Certain parts of this web site may be protected by passwords or require a login. You are responsible for maintaining the confidentiality of any user names, passwords, security questions, and answers. All information available through the privileged area of the site is confidential and proprietary to us. This includes all investment information and results, offering materials, financial statements, and other information provided through this part of the site.
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Severability
If any provision of these Terms is deemed unlawful, void, or for any reason unenforceable, then that provision will be reformed only to the extent necessary to make it enforceable, and it will be deemed severable from these Terms and will not affect the validity and enforceability of the remaining provisions.
Applicable law
These Terms and any action related thereto are governed by Massachusetts law and applicable US federal law. Any dispute relating to the above shall be resolved solely in the state or federal courts located in Massachusetts.
Privacy statement
Wellington Management respects the privacy of its clients and the confidentiality of information pertaining to its clients.
Information we collect
We may collect non-public personal information about you on RFPs, questionnaires, and other forms we receive from you, as well as from personal contacts such as correspondence, e-mail, telephone calls, or meetings. We may also receive information about you from third parties, such as your accountants, lawyers, financial consultants, and/or other service providers.
It also is possible to receive information from web browsers and apps regarding certain of your online activities using cookies, or other common tracking technologies. Some web browsers and other applications may provide a Do Not Track (DNT) preference setting. When a user turns on a tracking preference, the browser or application may send a message to web sites requesting that they do or do not track the user. At this time, we take no actions in response to any DNT settings or messages.
Information sharing
Wellington Management seeks to provide seamless service to all clients. To facilitate that process, information regarding client accounts is shared broadly between affiliates within the Wellington Management group of companies. For example, an affiliate may share information with other affiliates in order to facilitate portfolio management or provide client liaison services to a particular client. Client information may be used by Wellington Management in order to identify potential client needs for additional investment management services.
Wellington Management generally does not share non-public client information with unaffiliated third parties, except as necessary to perform the investment management services it has been hired to provide. For example, Wellington Management may share non-public client information with brokers and custodian banks in order to buy and sell securities and record those purchases and sales accurately. As a general rule, Wellington Management does not engage in joint marketing arrangements with unaffiliated third parties that involve the sharing of non-public information regarding Wellington Management’s clients. Wellington Management does not provide client information to unaffiliated third parties for their own marketing purposes.
Wellington Management does not disclose your information except as required or permitted by law. In the event that Wellington Management is involved in a merger, acquisition, reorganization or sale of assets, or bankruptcy, your information may be transferred or sold as part of that transaction.
Security policies
We use technical, administrative, and procedural measures in an attempt to safeguard your personal and other information from unauthorized access or use. No such measure is ever 100% effective though, so we do not guarantee that your personal and other information will be secure from theft, loss, or unauthorized access or use, and we make no representation as to the reasonableness, efficacy, or appropriateness of the measures we use to safeguard such information. Users are responsible for maintaining the secrecy of their own passwords. If you have reason to believe that your interaction with us is no longer secure (for example, if you feel that the security of any account you might have with us has been compromised), please immediately notify us by contacting your relationship team member.
Transfer of data to other countries
Any information you provide to Wellington Management through use of the Site may be stored and processed, transferred between, and accessed from the US and other countries which may not guarantee the same level of protection of personal information as the one in which you reside. However, Wellington Management will handle your personal information in accordance with this Privacy Statement regardless of where your personal information is stored/accessed.
Changes to Terms of use
We may revise these Terms from time to time; the most current version will always be at https://www.wellington.com/terms-use. By continuing to access or use the Services after those revisions become effective, you agree to be bound by the revised Terms.
Effective as of 17 January 2014