We have evaluated climate risk impacts for certain sub-sectors, but not yet the portfolio as a whole. We have engaged major fossil fuel companies and auto makers for over 20 years on climate risk and strategy, and the scenarios checked in SG 13.7 CC below are the ones we discuss with them, and our managers, to better understand the trajectory and risk for the whole industry, and industries and asset classes dependent on them.
Other than sector specific risks, climate change impacts all asset classes and securities, and asset allocation and portfolio construction. As a manager of managers, it has been difficult to understand future climate risks to the overall portfolio because we are not selecting the securities for each fund. We have, however, begun the methodology and data provider scoping to rate each of our corporate securities across a spectrum of environmental, ethical, and human rights criteria, which will be provided to managers when completed in 2021 (the Catholic Score). All things being equal, we are encouraging our managers to select the securities with the higher-rated human rights and environmental scores. Once that exercise is commonplace across our funds, we will be in a better position to understand some climate risks and opportunities across the portfolio, and individual funds themselves.