When assessing environmental risks, asset managers should use:

CFA’s sustainable investing materials recommend adual approachwhen evaluating environmental risks:

Qualitative assessmentscapture strategic and governance-related insights, including the company’s environmental policies, disclosures, and commitment to sustainability.

Quantitative data(e.g., carbon intensity, water use, waste management metrics) provide measurable, comparable indicators of environmental performance.Usingbothensures acomprehensive pictureof environmental risk exposure and management.