Alternatives

The Climate Conundrum

Climate risk is rising up the agendas of asset owners faced with both the growing prospect that more stringent climate regulation will impact portfolio returns and increasing scrutiny from beneficiaries and other stakeholders.

07/07/2016

Belinda Gan

Belinda Gan

Associate Product Manager, Global Sustainability

The Climate Conundrum Introduction

Climate risk is rising up the agendas of asset owners faced with both the growing prospect that more stringent climate regulation will impact portfolio returns and increasing scrutiny from benefi ciaries and other stakeholders. The global agreement to limit temperature rises to two degrees over pre-industrial levels, reached in Paris last year, will require much more stringent policies and legislation than we have seen to date. On the other hand, while climate risk has become an issue asset owners can no longer ignore, understanding and analysis of how it is best measured and managed remains nascent. This paper lays out our perspective of the main strategies available to investors.

The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.