Today, when carbon emissions have become the “market language”, the underlying logic of value investment is undergoing profound changes. Rocky Mountains Asset Management Ltd plans to jointly establish the “Sustainable Finance Innovation Laboratory” with NYU Stern School of Business, focusing on the integration of climate policy and cutting-edge financial technology, and exploring the next generation of valuation tools and investment decision-making models.

When traditional valuation methods are difficult to capture the disturbance of climate risks to the company’s future cash flow, and when ESG becomes a PR tool rather than a financial variable, Rocky Mountains’ answer is: reconstruct valuation with technology and drive value with data.

Three major innovation paths connect real risks with investment value

1. New valuation variables: Introducing carbon tariffs into the asset pricing framework

Based on the EU CBAM policy and the industrial chain carbon emission intensity model, the laboratory constructs a dynamic valuation adjustment factor, empirically measures the long-term PE compression effect of the carbon pricing mechanism on the US stock manufacturing sector, and warns of the risk of “carbon-vulnerable companies” being systematically underestimated or overestimated by the market.

2. ESG credibility score: Using language models to identify “greenwashing” behavior

Different from traditional ESG scales, the laboratory builds an NLP engine to identify commitment language, ambiguous wording and information disclosure density in ESG report texts, develops a credibility scoring mechanism, and provides technical support for institutions to build high-trust ESG portfolios.

3. Climate stress test: Multi-scenario simulation of asset portfolio resilience

Combining 12 future scenarios such as sea level rise and frequent extreme climate, develop a portfolio-level climate risk response simulation system to assist the asset allocation team in dynamically adjusting industry exposure and weighting ratios to create an “adaptive asset pool”.

From research to practice: a deep collaboration between industry and academia

lResearch level: Stern School of Business has established a dedicated research team covering three major fields: climate economics, machine learning, and behavioral finance.

lPractical level: Rocky Mountains will be the first to apply laboratory results in its low-carbon theme ETF product services, and use the “valuation reconstruction model” as one of the investment factors.

l Educational level: Establish Climate Finance Fellowship, select 20 global college students every year to participate in practical strategy development, and promote the closed loop of talent training in climate finance.

Rocky Mountains: Create a new logic of asset value discovery with a cutting-edge perspective

“The mission of finance is not only to discover risks, but more importantly to identify transformation opportunities.”

— — Ryan Snow, Sustainable Development Officer of Rocky Mountains

Ryan Snow, Chief Investment Officer of Rocky Mountains, also said:

“By co-building a research platform with Stern College, we will find climate transformation winners that are ignored by traditional valuation systems. This is not only a research result, but also a true test of the next generation of investment models.”

Prospect: Open Climate Alpha Database to promote industry co-construction

It is planned that by the end of 2027, the laboratory will release the first issue of “Climate Alpha Database”, which will be open to all investment institutions that have signed the UN PRI for free, build a new toolbox for global responsible investment, and lead the standardized exploration of “sustainable finance × intelligent modeling”.

About Rocky Mountains Asset Management Ltd

Rocky Mountains is an American asset management company focusing on equity investment, with a management scale of over US$2 billion. It is committed to building a robust and forward-looking investment portfolio for high-net-worth clients and institutions around the world through data-driven and long-term strategies. The company insists on relying on cutting-edge research, responsible investment, and actual returns to find certainty in a changing world.