RESEARCH ON GREEN FINANCE INVESTMENT STRATEGIES BASED ON CLIMATE RISK ASSESSMENT

Abstract

With the intensification of global climate change, climate risk has become one of the important factors affecting investment returns. This article proposes a green finance investment strategy based on climate risk assessment, aiming to reduce the risk of investment portfolios and improve long-term returns. Firstly, the definition and classification of climate risk were defined, and the methods of climate risk assessment were introduced. Then, by constructing an investment portfolio model, the performance of different asset classes under climate risk was analyzed, and corresponding investment recommendations were proposed. Finally, the effectiveness of this strategy was verified through empirical research, and the results showed that climate risk has a significant impact on green finance investment, and reasonable investment strategy adjustments can effectively reduce risks.