“Portfolio managers get this information directly in their trading systems,” Tangen said. AI can help identify “transition winners,” which he describes as companies that are “decarbonizing faster and more effectively than the market expects.”
The wealth fund’s decision to rely more on AI coincides with evidence that the physical fallout of climate change is picking up, adding urgency to the need for investors to act fast. Erratic government policies have also increased the likelihood of a disorderly future, and investors now face the risk of “meaningful losses at the portfolio level,” the wealth fund said in its report.
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