Net Net: Promoting innovation and managing change
Net Net: Promoting innovation and managing change

How to cash in on climate change

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Experts says it's time for retail investors to consider how global warming affects stocks, bonds and other investments alongside more traditional indicators like earnings estimates and growth projections.

"It's not only completely possible for investors to include these factors in their decision-making and their portfolios or in their manager selection, but I don't know why you wouldn't given that it helps you identify a better business," said Bruno Bertocci, who leads UBS Global Asset Management's sustainability business strategy.

The metrics vary by industry. Some companies disclose climate change as a risk in their annual regulatory filings. Or they report greenhouse gas emissions and efforts to clean up their supply chains. Others may not report the specific risk, but savvy investors can anticipate trends that are likely to hurt or help the broader industry. In short, it's time to pick global warming's winners and losers.