Toward An Investing Strategy For Climate Change

Getting a handle on investing options in the age of accelerating climate change

Kathryn McDonald, 13 March 2019 (CNBC)

“The National Climate Assessment observes that, without significant mitigation efforts, climate change will severely damage the U.S. economy and impact all facets of life, including investment management…[Identifying future risks and opportunities requires] a deeper understanding of the growing body of research that lies at the intersection of company financial information and climate science…[Many corporations are proactively addressing climate-related challenges to] reduce future costs and gain new customers with the obvious objective of bolstering earnings. Importantly, these organizations are choosing to evolve rather than be backed into a corner by changes in regulations or technology…

click to enlarge

[Viewing companies through a climate lens can augment the] traditional investment view that is anchored on financial statement analysis and factor in the proactive steps that companies are taking (or not taking) to gain a more nuanced assessment of a company's fair value and future earnings potential…[It is] more critical than ever that investors think through climate impacts and understand where future [risks and] demand for products will reside…[The global impact and response to climate change] are yet to be seen…[but] there will be companies that emerge as winners, while others will lose out…[Ignoring this reality overlooks] one of the key investment questions of our time.” click here for more

click to enlarge

Tweet