India's Largest Fund Houses Still Lack Climate Stress Testing, Study Finds
Veena Lathe
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Last Updated: 2nd November 2026 - 02:57 pm
Key Takeaways
- Twelve large Indian asset managers representing more than 80% of industry assets received a zero score for climate scenario analysis and portfolio stress testing.
- None of the 12 disclosed Scope 3 Category 15 financed emissions associated with their investment portfolios.
- Ten of the 12 AMCs nevertheless improved their overall climate-risk preparedness scores compared with the previous assessment.
India's largest mutual fund houses continue to show a major gap in portfolio-level climate-risk analysis, according to the second edition of Climate Risk Horizons' Risking Alpha study.
The assessment covered 12 large asset management companies representing more than 80% of the domestic mutual fund industry's assets. All 12 received a score of zero for climate scenario analysis and stress testing, meaning none disclosed portfolio-level analysis examining how different climate outcomes could affect investments.
The study also found that none of the assessed managers publicly disclosed financed emissions, which capture greenhouse-gas emissions linked to companies and assets held in investment portfolios.
The findings were not uniformly negative. Ten of the 12 AMCs improved their overall climate-risk preparedness scores from the previous year's assessment. Responsible-investment policies and governance have also become more common.
However, coal-related investment policies remain limited. Climate Risk Horizons said only one of the 12 AMCs received a score on its coal-policy criterion, based on a restriction applicable to a specific fund rather than an AMC-wide exclusion.
The study focuses on risk-management and disclosure practices, rather than assessing the investment performance of individual mutual fund schemes.
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