A rapid transition to net zero emissions is required to avert the worst climate scenarios and build resilience against harmful climate impacts.
Companies need to adapt or face significant challenges. Investors need to be aware of the effects that this transition will have on companies through changes to policy, technology and the consumer landscape. The transition has the potential to create value, but can also cause significant losses.
Willis Towers Watson is bringing together best-in-class solution providers to launch a new type of equity index that assesses the anticipated impact of a climate transition on company valuations. The STOXX Willis Towers Watson Climate Transition Indices, and any subsequent strategies tracking them, will enable investors to manage climate transition risk. By tilting toward companies expected to benefit from the transition, and tilting away from companies expected to face significant challenges, investors can capitalise on opportunities and manage risks as we move into a net-zero economy.