Technology-enabled solution to challenges of reporting Climate Change opportunities and risks

From: R4 Advisors
Published: Mon Mar 08 2021


R4 Advisors today announces the launch of PRI Sprint, a technology-enabled solution for Signatories to the Principles for Responsible Investment (PRI) who invest in real assets. R4 will hold a webinar March 16th to support the introduction of PRI Sprint.

R4 works with clients to drive investment outperformance through the development of ESG strategies for real assets including real estate, infrastructure and agriculture. A critical step in strategy development is ESG real asset reporting, particularly PRI Climate Change reporting based on the Task Force for Climate-related Financial Disclosures (TCFD).

"The value of being a PRI Signatory has never been greater," said Ms. Caceres. "But the challenge of continuing to do well in PRI reporting has also never been greater for real asset investors."

Ms. Caceres explained that substantial changes to the PRI report require investors to identify the opportunities and risks from Climate Change embedded in their portfolios, and to test the resilience of investment strategies through scenario analysis. Last year, when Signatories were asked to report on Climate Change, but the results were not scored, only 26% of investment managers provided answers.

Software developers and securities index providers are now offering programs for stock and bond investors to analyze portfolios and answer PRI Climate Change questions. Unfortunately, these technologies aren't relevant to direct real estate, infrastructure and agriculture assets due to private market opacity and the unique nature of each asset.

"We have developed a strategy for success for real asset investors by using our knowledge of the commonalities of each asset class and capturing that in technology," Ms. Marshall said. "We take the output from the software and use our knowledge and experience to lead workshops that deliver answers and results."


"PRI is asking Signatories to adopt best practices in ESG reporting on Climate Change," Ms. Marshall continued. "Soon TCFD-aligned reporting will be what every investor wants, and what regulators will mandate. We encourage PRI Signatories to get ahead of the curve by doing well on reporting Climate Change risks and opportunities this year."

The webinar "Optimize Your PRI 2021 Reporting" will be held Tuesday March 16, 2020 at 11 am EST. The event is free, and you can register by clicking on this link.
Company: R4 Advisors
Contact Name: Catherine Ann Marshall
Contact Email: catherine@r4advisory.com

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