A guide to assessing portfolio resilience
Is your portfolio resilient to as wide a range of economic environments as possible and how resilient is it? The pace of change in sustainability is accelerating. A starting point is to look at resilience through the lens of potential sustainability scenarios that might occur.
There are two key dimensions to portfolio resilience:
Most asset owners rely on asset-level or manager-level practices to manage sustainability risk. We believe that asset owners can take action today to assess portfolio resilience and integrate sustainability-related risks into top-down or total portfolio construction decisions.
In this article, we talk about the concept of portfolio resilience and introduce a practical, implementable framework for assessing portfolio resilience with sample outputs from resilience/sustainability risk exposure analysis.
This article was first published in the April 2019 edition of ASFA’s Superfunds magazine.
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Keeping Score Sustainability | .1 MB |