The Investor Responsibility Research Center Institute (IRRCi) has just presented the winners of the IRRC Institute Research Award for the fourth consecutive year. The competition seeks innovative research that examines the interaction between the real economy and investment theory.
Two research papers – one academic and one practitioner – each have received the 2015 IRRC Institute Research Award. For the first time in the Award’s four-year history, the judges also selected multiple research papers for Honorable Mention recognition. One of these research paper is “Hedging Climate Risk”, which is co-written by Mats Andersson (AP4), Patrick Bolton (Columbia Business School) and Frédéric Samama (SWF Research Initiative).
The paper presents a simple dynamic investment strategy that allows long-term passive investors to hedge climate risk without sacrificing financial returns.