In 2016, we launched the SEI Metrics Project, which provides free, open-source portfolio testing for listed equity portfolios. Over the course of the project, more than 200 institutional investors around the world signed up to test their portfolios, including large asset managers, pension funds, insurance companies, banks, and sovereign wealth funds. Since its launch, more than 2,000 portfolios have been tested for 2°C alignment with more than $3 trillion in assets under management.
The model compares key sectoral and technology trends across the energy, power, and transport sectors, and was extended to cover industry in 2017. It compares the exposure of a given portfolio to current and planned capacity, production, and investment plans versus 2°C scenarios, mapped to specific asset classes and geographies, with geography and stock market-specific calculation outputs. The development of the model was funded by the EC H2020 program as part of the SEI Metrics project.
Out of the 25% of surveyed investors involved in the road-test, 88% said they were likely or very likely to use the assessment in portfolio management, engagement, and / or investment mandate design.