A U.S. public pension fund with $14B AUM wanted to reduce forward portfolio carbon intensity in line with stewardship commitments — without taking on tracking-error risk against its liability benchmark. Drawing on our published research in generative ESG indexes, we constructed a glide-path framework that achieved a 31% reduction in forward carbon intensity at zero tracking-error cost relative to baseline.
Case Study · Sustainable Finance
A Climate-Aware Glide Path for Long-Duration Liabilities
A public pension fund wanted to reduce forward carbon intensity without taking tracking-error risk against its liability benchmark. We built the framework.
Lepton Engagement Team
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June 15, 2025
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Case study