Is Climate Change impacting the U.S. stock market?

Climate change is not just an environmental concern, but also an economic one. Today, environmental and in particularly climate topics are already influencing how individuals consume, governments regulate, businesses operate, and – most importantly for investors – how companies are valued.

It’s difficult to forecast climate change trends with high confidence levels, i.e. the climate change may worsen more than expected, or, looking at model predictions, market participants may react differently. These diverging outcomes are examples of climate risks and opportunities, climate factors will impact portfolios of companies based on the financial materiality.

Not considering climate risk in the investment decision might appear the cheaper option in the short term, but over a common longer term investment horizon, inaction is in fact the more expensive choice for investors. Download the research to learn more.