Ensures that the financial implications of environmental opportunities and risk are properly understood by financial institutions, investors and issuers and are appropriately reflected in the world’s capital markets.
Financial markets that are attuned to environmental issues will create permanent and powerful incentives for companies to improve their environmental performance, while also ensuring better returns for investors.
WRI’s premise is that environmental considerations are not incorporated into the overall financial analytical framework used by most actors in the capital markets. As such, investors possess insufficient information to adequately assess how environmental considerations impact a company or project’s risk/return tradeoff. WRI believes that markets that have fully discounted the environmental implications on risk and return will ultimately facilitate capital allocation to companies with sound environmental strategies.
WRI is working to remedy this problem by:
- collaborating with the investment community to quantify the financial implications of environmental risks and opportunities and
- calling for greater disclosure of environmental risks and data by companies and regulators.
Photo credit: flickr/Katrina.Tuliao
Project Partners
- APG Investments
- Goldman Sachs Center for Environmental Markets
- HSBC
- The Tremont Group LLC
