LQG 2024/07/09 – 18:30 – 3D Investing: Jointly Optimizing Return, Risk, and Sustainability – Clint Howard – at Snowflake – IP *OLO* Hybrid

LQG 2024/07/09 – 18:30 – 3D Investing: Jointly Optimizing Return, Risk, and Sustainability – Clint Howard – at Snowflake – IP *OLO* Hybrid

Jointly Optimizing Return, Risk, and Something Else!

Seminar by Clint Howard

2024/07/o9 – In-Person and On-Line – Hybrid!

The LQG is very grateful to Snowflake for hosting this in-person and on-line hybrid LQG.

Traditional mean-variance portfolio optimization is based on the premise that investors only care about risk and return. However, some investors also have non-financial objectives such as sustainability goals. We show how the traditional approach can readily be extended to mean-variance-sustainability optimization and explain why this 3D investing approach is ex-ante Pareto-optimal. We illustrate its efficacy empirically in several studies, including carbon footprint and SDG objectives. Importantly, we highlight conditions under which a 3D optimization approach is superior to a naïve 2D approach augmented with sustainability constraints.

 

Clint Howard

Quant Equity Research

Clint Howard is a Researcher at Robeco’s Quant Equity Research team. His areas of expertise include stock selection research, portfolio construction, and machine learning. He joined Robeco in 2022. Prior to this, he worked as a Researcher at Macquarie Investment Management. He joined the industry in 2016. Clint holds a PhD in Finance from the University of Technology Sydney. He also holds a Bachelor of Engineering (Chemical & Biomolecular) and a Bachelor of Science (Mathematics) with First Class Honours and the University Medal, both from the University of Sydney.