No investor can afford to ignore climate change. It poses a business-critical risk for global companies and a systemic challenge to the financial system. With the consequences of climate change already being felt, it will increasingly impact all economies, asset classes and industries, whether directly or indirectly.
Without greater action, we can expect an estimated $23 trillion in global losses over the next 80 years in line with a 4°C rise in global temperatures. This can be avoided, but it requires far bolder and more urgent action in driving forward and adapting to the necessary transition to a clean global economy.
As the governors of the Bank of England and Bank of France explain, "If some companies and industries fail to adjust to this new world, they will fail to exist."
It is incumbent on companies to embrace necessary changes in corporate strategy. Those that do have opportunity to thrive.