Record high temperatures are fueling climate conditions that put more lives at risk through unprecedented drought, floods and storms.
The global heat wave is also having an effect on the financial world, providing a stark reminder of how asset managers are struggling to assess the impact such physical climate risks have on their investment portfolios.
"I don’t think the market understands the direct and indirect risk” facing corporate assets from climate-related disasters, said Matthew Wright, a research analyst at Impax Asset Management Group, which runs one of the world’s biggest investment portfolios geared toward a low-carbon economy.