Valencia, Andrés MoraGianinazzi, VirginiaHaeusler, Tamara Sabrina2024-11-262024-11-262023-10-182023-09-10http://hdl.handle.net/10362/175806This research aims to develop an effective strategy to hedge against climate change risk within port folios at an industry sector level. Employing a specialized Min-Max optimization methodology inte grating climate risk factors, two portfolios emerge: a diversified ESG Portfolio encompassing all S&P 500 sectors and an ESG Low Risk Portfolio, specifically targeting sectors with minimal climate risk exposure. Data from 2001 to 2023, with a focus on critical climate risk periods (2015-2016 and 2017- 2018) have been analyzed. The study’sfindings underscore the ESG Low Risk Portfolio's long-term effectiveness, highlighting its potential as a strategy to mitigate climate change risks within portfolios.engMitigating climate riskEsg risk scoresmaster thesis203684222