Urgent Consideration of Extreme Climate Scenarios for Institutional Investors

In this article, we discuss recent studies by climate scientists indicating that the Earth is warming faster than expected. The question is whether economists are taking this into sufficient account in their predictions. According to a study by the Carbon Tracker Initiative, this is not the case. What does this mean for your investments?

To gain more insight, we recommend considering extreme scenarios as well, as the impact of climate change on investments can be substantial. As an institutional investor, given the uncertainties surrounding climate change, there is no immediate need to adjust your asset allocation. However, it is advisable to already have extreme scenarios in mind.