Climate investing has been a tough field. Some people say there’s not enough data. Others say that the ESG ratings don’t help.

So we decided to go at it in a different direction: Let’s see what the market says about the climate risk of different stocks. Using the return differences between high and low climate risk stocks, we’ve constructed a model which could then calculate the market’s estimate of climate risk. Currently in its first iteration, this model could identify fairly consistent climate risks in the Energy sector.

This model is now available as open source software on github, and you can check it out at investing.opentaps.org We’ve also made substantial progress on a related open source book on climate investing. Be sure to sign up for future updates about further enhancements.