CNS-Responsible-Investing 2024 - Flipbook - Page 30
INTEGRATING CLIMATE CONSIDERATIONS
Looking ahead, we aim to continually quantify and better
understand the role climate risks and opportunities play
in our company valuation processes.
reinforced our role as a trusted partner committed to
delivering transparent, client-focused analysis aligned
with evolving investment priorities.
Integrating Climate Data into Bespoke Analysis
Forward-Looking Focus
We recognize that clients increasingly expect more
than standard ESG metrics and disclosures. They
seek actionable insights tailored to their portfolios.
For example, in response to an inquiry on carbon
transition from a client’s Global Real Estate
Portfolio, our Responsible Investing team delivered
a customized report analyzing carbon reduction
trends, cost of capital implications, and the strategic
relevance of emissions disclosure. Having consistent
and e昀昀ective climate data tools allows the team to
streamline delivery of these requests.
As climate risks become increasingly relevant to
investment decision-making, we are focused on
enhancing how we identify, assess, and incorporate
these factors across our investment strategies. Over
the next year and beyond, we aim to strengthen
Cohen & Steers’ capabilities across the following
climate-related focus areas:
This analysis included a detailed breakdown of the
portfolio’s weighted average carbon intensity (WACI)
across Scope 1, 2, and 3 emissions, benchmarked against
peers. We provided not only the portfolio outputs but
also the supporting rationale and internal research
behind our decisions, including Scope 3 sourcing and
category selection, data hierarchies, regional disclosure
di昀昀erences, and more. Given the REIT universe’s unique
considerations for applying this data, our expertise
helps give clients con昀椀dence that the outputs are both
accurate and well-substantiated. This engagement
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COHEN & STEERS | RESPONSIBLE INVESTING
• Physical risk assessments: As data tools and
geospatial datasets continue to evolve, we are actively
monitoring the landscape to ensure we are using
the most detailed and precise assessments available
across our investment universe, including REIT
portfolios and infrastructure assets. The accuracy of
our models is closely tied to the quality of asset-level
mapping provided by third-party data providers,
making it essential to regularly review and validate
those inputs.
• Carbon attribution: In response to increased interest
in understanding portfolio-level carbon footprint
changes, we are expanding our capabilities to better
isolate and explain the underlying drivers. This
