Most investors need to make a significant behavioral shift and start factoring climate change into their portfolio risk management, a study on its impact on financial market returns found on Thursday.
Government officials are meeting in Germany this month to work on a global deal to cut greenhouse gas emissions due to be agreed in six months' time in Paris. There is increasing debate about the impact of climate change on investments, particularly in fossil fuels.
A study by consultants Mercer — backed by the International Finance Corp., the World Bank's private sector arm, and British and German government development units — modeled a range of outcomes on the impact on a range of assets and sectors out to 2050 under four temperature change scenarios.