Nomura: Asset Owners Should Leverage Physical Risk Data to Pressure Managers
According to Nomura Asset Management, asset owners are uniquely positioned to capitalize on the rapid expansion of physical risk data to drive greater accountability among investment managers. The head of sustainable fixed income at Nomura AM argues that the quality and availability of data regarding climate-related physical risks are improving significantly. Consequently, institutional investors and other asset owners should utilize this wealth of information to demand more rigorous analysis and action from their fund managers. By insisting on detailed disclosures and robust risk mitigation strategies based on this enhanced data, asset owners can effectively compel managers to 'snap to attention' and prioritize climate resilience in their portfolios. This approach highlights a shifting dynamic in sustainable finance, where data transparency empowers capital allocators to enforce higher standards of environmental risk management. The commentary underscores the strategic importance of leveraging technological and analytical advancements in climate science to influence investment behaviors and ensure that financial decisions align with long-term sustainability goals and risk awareness.
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Nomura: Asset Owners Should Leverage Physical Risk Data to Pressure Managers
According to Nomura Asset Management, asset owners are uniquely positioned to capitalize on the rapid expansion of physical risk data to drive greater accountability among investment managers. The head of sustainable fixed income at Nomura AM argues that the quality and availability of data regarding climate-related physical risks are improving significantly. Consequently, institutional investors and other asset owners should utilize this wealth of information to demand more rigorous analysis and action from their fund managers. By insisting on detailed disclosures and robust risk mitigation strategies based on this enhanced data, asset owners can effectively compel managers to 'snap to attention' and prioritize climate resilience in their portfolios. This approach highlights a shifting dynamic in sustainable finance, where data transparency empowers capital allocators to enforce higher standards of environmental risk management. The commentary underscores the strategic importance of leveraging technological and analytical advancements in climate science to influence investment behaviors and ensure that financial decisions align with long-term sustainability goals and risk awareness.
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