---
title: Climate Metrics for Investments
url: https://www.ml-quant.com/papers/ssrn/5283074/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5283074
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5283074
featured: 2025-06-11
citations: unknown
topic: Portfolio & Allocation
---


# Climate Metrics for Investments

The integration of climate metrics into investment portfolios as optimization constraints is demonstrated, indicating that the MSCI World Index can handle high integration of climate metrics with minimal performance or tracking error losses.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5283074
- Identifier: SSRN 5283074
- Released: 2025-06-05
- First featured: Quant Letter No. 101 (2025-06-11): https://www.ml-quant.com/issues/2025-06-11/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Portfolio & Allocation

## Related

- [Physical Climate Risk in Asset Management](https://www.ml-quant.com/papers/arxiv/2504.19307/): The paper suggests a framework considering the impact of climate events on company assets, indicating the need for extra safe capital to counter losses from physical climate risks.
- [Assessing dynamic connectedness in global supply chain infrastructure portfolios: The impact of risk factors and extreme events](https://www.ml-quant.com/papers/arxiv/2508.04858/): A study on global supply chain infrastructure investment risk factors shows that portfolios with higher ESG scores have stronger connections with other portfolios, with COVID-19 altering these connections.
- [ESG and Behavioral Finance: Why ESG Investing Is Primarily a Psychological Phenomenon](https://www.ml-quant.com/papers/ssrn/4786610/): A Psychological Phenomenon: The study expands traditional portfolio selection and asset pricing theory to include ESG investing, introducing two behavioral innovations related to investor preferences and biased judgments about ESG impact and return distributions.
- [Managing ESG Ratings Disagreement in Sustainable Portfolio Selection](https://www.ml-quant.com/papers/arxiv/2312.10739/): A nonlinear optimization model for portfolio selection considering risk, return, and ESG criteria is proposed, resolving discrepancies between different agencies' ESG ratings.
- [Talk vs. Walk: Lessons from Silent Sustainable Investing of Mutual Funds](https://www.ml-quant.com/papers/ssrn/4602285/): Talk vs. Walk: The study finds that investors favor internal ESG labels over external sustainability ratings, significantly influencing fund flows, but high sustainability rating funds don't necessarily rebrand as ESG funds due to regulatory pressure and limited benefits.
- [Propagation of a carbon price in a credit portfolio through macroeconomic factors](https://www.ml-quant.com/papers/arxiv/2307.12695/): The study examines the impact of carbon taxes on firm value and credit risk measures in a closed economy, offering a method to calculate risk measures evolution based on a climate transition scenario.