Does climate change present a risk or an opportunity for your equity portfolio? The question is neither values-based nor political. Financial markets can price long-run risks, with implications for capital allocation, equity multiples, and sector valuations. Over the 12 months ending June 30, 2026, the Nasdaq Clean Edge Green Energy Index returned 88.1%, compared with 22.8% for the broad U.S. equity market as measured by the Russell 3000.¹

CFA Society San Diego welcomes Robert F. Engle III, 2003 Nobel Laureate in Economics, to discuss his market-based approach to climate risk. Building on his Nobel Prize-winning ARCH/GARCH framework, Dr. Engle has helped develop portfolios, market-implied risk measures, and statistical methods for hedging climate risk. His research also examines how investors can distinguish genuinely sustainable firms from those engaging in “greenwashing.”

A panel featuring local experts from The California Endowment and Meketa Investment Group will follow, exploring how institutional investors are balancing climate risk with investment decision-making and positioning their portfolios for the energy transition. Join us for a timely discussion on evaluating long-run climate risk and the financial implications of decarbonization.

¹ Source: First Trust, performance data as of June 30, 2026. Nasdaq Clean Edge Green Energy Index and Russell 3000 Index.