Nuveen, the asset manager owned by US investment house TIAA, has released new research claiming a distinct link between climate-proof investing and returns in equities, fixed income, real assets and real estate.
In its report entitled Addressing climate change can help add alpha and manage risk, the group details a specific link between returns and each asset class.
The launch has been timed to coincide with Climate Week, which is taking place between September 24 and 30 September in New York, alongside the UN General Assembly.
The company claims that equity portfolios with climate-aware investments have a stronger propensity to outperform due to tightening corporate regulations, technological changes and increasingly frequent catastrophic weather events.
In real estate, the company said that “net zero carbon” buildings may prove easier to sell, are more attractive to tenants, and are less vulnerable to obsolescence. And, in fixed income, Nuveen claims that the increasingly popular green bond market will offer increased options for outperformance potential and climate-aligned outcomes.
In a statement, accompanying the launch of the report, Amy O’Brien, global head of Responsible Investing at Nuveen, said that climate change was a “defining issue” for investors.
She said: “The realities we’re experiencing have strengthened our resolve to keep it at the forefront of our investment policies, strategies and practices every day.
“As the world convenes to discuss global issues during Climate Week and the UN General Assembly, we remind investors to focus on the value of understanding how this long-standing issue is transforming markets, policy and our financial well-being as investors.”
Nuveen claims to be the third largest investor globally in labelled green bonds and the largest in US dollar dominated issuances.