Performance of Climate-Aligned vs. CPPP Benchmark Indices under APRA’s Performance Test
Key researchers
- Ummul Ruthbah
- Aditya Shankar
Abstract
In this research brief (commissioned by Climateworks), we examine the historical financial performance of climate-aligned investment indices compared to their traditional market benchmark indices across six major asset classes.
These include Australian Equities, International Developed Market (DM) Equities, International Emerging Market (EM) Equities, International Listed Property, International Listed Infrastructure, and International Credit.
Our goal is to determine whether incorporating climate considerations via in-market climate indices would have affected risk and return outcomes for investors, particularly in the context of APRA’s Your Future Your Super (YFYS) performance test.