Climate Solutions Investing: Your Toolbox for Building a Diversified Investment Portfolio
Investors should use the entire investment toolbox to build diversified exposure to climate solutions.
Authored by: Lydia Guett
The Materiality of Sustainability for Investors
Sustainability trends—including climate change, multi–stakeholder driven society, resource degradation, demographic challenges, and technological revolution—have already impacted investment performance. Investors that incorporate these risks and opportunities into their decision-making frameworks are likely to be better prepared for the future than their peers.
A Summary of Climate Change Science for Investors
Investors would be wise to consider climate science in their investment decision-making process. Climate risk is likely underestimated by financial markets, and there is a window of opportunity for investors to get ahead of the curve, given our expected future repricing of this risk. This paper provides a high-level overview of the current climate science and discusses a few economic implications. Put simply, we all need to think like scientists now.