How investors can manage the risks of climate change

Investors need to apply basic principles

clock • 4 min read

There are many reasons why investors care about climate risks

Concern for the environment might be the most obvious, but many investors also believe that long-term risk management must incorporate climate risks; be they the physical risks of a warmer planet, or the transitional risks as we adapt to a carbon-neutral economy. Regulators around the world are also demanding better management and disclosure of sustainability risks. When it comes to addressing exposure to climate risks in a portfolio, we think investors should start by applying several basic principles. Acknowledge market prices incorporate material risks Ample empirical research suppo...

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