How Does Climate Risk Impact on Transition Finance?

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How Does Climate Risk Impact on Transition Finance? | A Guide To: Transition Finance

Join Robin Castelli, Partner and Head of Transition Finance Investment at Orange Ridge Capital in ‘A Guide to Transition Finance’ as we explore quantitatively approaching transition finance to inform investment decisions in the VC, PE, and private credit space.

Oct 08, 2024

C.Robin Castelli, Partner, Head of Transition Finance Investing, Orange Ridge Capital

How Does Climate Risk Impact on Transition Finance? | A Guide To: Transition Finance

The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization

Transition finance differs from traditional ESG by avoiding simplistic metrics and instead addressing the complex, interconnected nature of climate risks and opportunities.
It employs dynamic allocation and positive screening, targeting companies actively advancing towards sustainability rather than excluding traditional sectors.
Traditional ESG metrics often underestimate climate impact due to incomplete data and a lack of consideration for complex climate interactions.
Investing in companies undergoing transition can reveal undervalued assets and potentially offer higher returns compared to investing only in established green technologies.