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Video: Can Short Selling Help Investors Drive Decarbonization?

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Video: Can Short Selling Help Investors Drive Decarbonization?

At Sustainable Investment Forum North America 2021, AQR Principal and Head of Responsible Investment Christopher Palazzolo spoke about how shorting can help investors better effect change at high-emissions companies. Chris was joined on this panel by Rick Slocum, Chief Investment Officer of Harvard Management Company, and moderator Margaret Ann-Splawn, Executive Director of the Climate Markets & Investment Association. 

In their discussion, Chris explains that short selling within a low-carbon portfolio enables investors to more fully express their ESG views, increases their ability to effect change at high emitting firms, and allows for better climate-related risk management. Additionally, Chris argues that it’s crucial that the carbon exposure of short positions offsets the carbon exposure of long positions when calculating a portfolio’s carbon footprint. 

Watch the 20-minute replay of the panel below. 

 

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