The AIIB-Amundi Climate Change Investment Framework has been launched by the Asian Infrastructure Investment Bank and Amundi.

The framework is a benchmark investor tool that will assess climate change risks and opportunities in line with the three objectives of the Paris Agreement at the issuer-level. It will translate the three objectives into fundamental metrics providing investors with a tool to assess an issuer’s level of alignment with climate change mitigation, adaptation and low-carbon transition objectives.

AIIB and Amundi say that investors can expect portfolios aligned with the framework to deliver a potential financial impact by benefiting from any future repricing of climate change risks and opportunities in the capital market. By measuring issuer performance against the three objectives of the Paris Agreement, investors can include A-list issuers and B-list issuers into their portfolios. An investment strategy targeting both A and B List issuers should be more resilient to climate change risk and more exposed to opportunities not yet priced in by the market.