Research Paper: “Investing In Tomorrow: A Guide to Building Climate-Resilient Investment Portfolios”
University of Cambridge: Cambridge Institute for Sustainable Leadership (2025) in collaboration with Sovereign Investors
Executive Summary: Developed by the Investment Leaders Group within CISL’s Centre for Sustainable Finance, with contributions from Sovereign Investors, this guide takes a unique view by breaking down what needs to happen at each stage of the investment process for listed equity and debt portfolios, deploying tools and strategies already available in the market.
While investors are aware of the need to integrate physical climate risks in financial decision-making, approaches to addressing it remain nascent, fragmented and unfamiliar.
The systemic nature of physical climate risk therefore requires systemic risk management and a two-fold approach from private capital: (1) making investment portfolios resilient to these risks, and (2) also actively investing in resilience measures to strengthen the broader ecosystem.
This guide is designed to serve as a roadmap for investors, and is structured in two main sections:
In focus: the investment process: illustrates how decisions made early on can significantly impact subsequent stages and opportunities, emphasizing the need to address physical climate risks from the outset.
Changing the landscape: engaging with the enabling environment: examines the different ways in which investors can proactively engage with policy, the real economy, the broader financial sector and within their own organisations to enhance systemic resilience.
Key takeaways from the report are shown in the text box.
