Global efforts to meet targets set out in the Paris Climate Accord are going to impact investors, and the sectors in which they invest, suggests a new report from the FERI Cognitive Finance Institute.

The report was prepared with the co-operation of ISS-Ethix Climate Solutions, a unit of Institutional Shareholder Services Inc.

The impacts will be driven by a number of developments, the report says, including the discrepancy between decarbonization commitments and action to meet these goals; reliance on new technologies; and the continued use of subsidies for fossil fuels in many markets.

“Progress in key technologies needed for the low-carbon transition as tracked by the International Energy Agency (IEA) has so far been insufficient, with many sectors currently failing to develop or deploy the necessary technologies,” the report says.

Against that background, investors can take steps to manage their exposure to this ongoing risk by: evaluating the progress towards low a carbon economy by different sectors and countries; monitoring the exposure of their investments to technology that’s being developed to aid the transition; and assessing the preparations of companies to manage their risks and to seize on opportunities to take advantage of the transition.

Sectors that are responsible for a high share of emissions include electricity and energy, agriculture, industrials, transportation, and buildings, the report notes.

“Climate change and decarbonization are having wide-ranging impacts on all industry sectors, but these impacts will vary in their severity, duration and imminence,” said Maximilian Horster, head of ISS-Ethix Climate Solutions, in a statement. “Investors need to monitor all sectors, focusing on those most strongly affected.”