For many investors, taking the actual and likely effects of climate change into account when shaping portfolios is now a central consideration. To help them calibrate their approaches so that they can contribute to meeting global targets for net zero greenhouse gas emissions, BNP Paribas Asset Management is launching this handbook. It offers investors practical guidance.
While the consequences of global warming are clear – severe weather events, rising sea levels, etc. – the significant risks to economies and societies worldwide, the implications for business, infrastructure and supply chains, and what all this means for investors need to be better understood. Companies face physical risks from climate events as well as ‘transition’ risk from new climate policies, advancing technologies and consumer preferences. These can represent pressures on business, via rising costs, lost revenue, market shifts and possible default. It can also be argued that opportunities arise for companies integrating climate considerations into their strategies and operations or offering emission-reducing products and services.
