Pricing Climate Risk with Bob Litterman

Today, our guest is Dr. Bob Litterman. An economist, Bob is considered one of the leading authorities on risk management and quantitative trading on Wall Street. He has been studying climate change for a decade, and today he shares not only his insights from managing firm-wide risk but how it applies to climate risk.  

 As a board member of Climate Leadership Council, he breaks down the Baker-Shultz Carbon Dividend Plan, which is now supported by over 3,500 economists, and explains why pricing carbon is imperative for informed decision-making. 

 In this episode:

  • How he created the Black-Litterman Global Asset Allocation Model 
  • How financial markets have evolved in viewing climate risk 
  • Why the Climate Leadership Council has broad support from a wide range of energy industry leaders, Nobel Laureate economists and nonprofits 
  • How pricing carbon would provide incentives and let consumers decide 

This episode's guest

Bob Litterman
Bob Litterman
Chairman of the Risk Committee, Kepos Capital LP.

This episode's host

Manju Seal
Manju Seal
Head of Sustainable Finance Advisory, BMO Capital Markets

Questions or comments?

Contact us
Transcript