From Left: Theodore Ehlert, Luna Fakhouri, Caitlin Crafts, Gabriel Brown, Amy Kidd, Charlie Kolstad
Text Box: Developing a framework for assessing environmental performance of firms.

 Welcome!

Project Abstract

 

Climate change presents a challenge for the socially responsible investment (SRI) industry.  As SRI integrates investors’ personal values and social concerns with financial goals, it is increasingly important to address climate change as a financial as well as social priority.  We propose to make explicit the link among climate change, fiduciary responsibility, and shareholder value.  To do this we will first design a screening model for analyzing a company’s environmental performance as it relates to global climate change. Our model will be applied to conventional indices to distill a list of companies that satisfy the predetermined criteria.  This list of “climate-friendly” companies will be use to create a marketable portfolio for our client, AIG Global Investment Group (AIGGIG).  In the AIG case study, we will assess shareholder value by comparing the financial performance of our portfolio against conventional benchmarks. The results of this project will allow individual and institutional investors to assess a company’s climate related performance concurrently with financial performance in making socially responsible investment decisions.

Climate Fund Group Project

2400 Bren Hall

University of California

Santa Barbara, CA 93106-5131

To contact us:

Phone: 805.893.7611

Fax: 805.893.7612

E-mail: tehlert@bren.ucsb.edu