The Chief Risk Officers in the network came together recently to explore the relevant topic of stranded assets. A special thank you to Olaf Weber, Professor at University of Waterloo, for sharing key takeaways from his research on stranded assets that helped to frame the discussion.

Participants raised a few points during the session that included:

• Ensuring that ownership of the carbon reduction footprint is at the right level of the organization to align goals and incentives for investment managers.

• Assignment of the appropriate performance benchmarks with some participants citing the value of using Paris-aligned benchmarks.

• Data availability and reliability surfaced as an issue to enable screening and quantification of potential stranded assets.

• Application of scenario analysis and the appropriate choice of time horizon can yield quite different results and needs some additional development.   

Thank you to all the participants. For a full list of upcoming round tables, please visit our events calendar.

Have a question for the network? We encourage Research Partners to host a round table. Contact us for more details.