Morningstar Indexes, Morningstar Sustainalytics and ESG Investor recently convened a roundtable of asset managers and asset owners to discuss the growing impact of physical risk on investment portfolios and what market data is needed to help investors address it.
As extreme weather events become more frequent and represent a bigger threat to businesses and our global infrastructure, how investors assess and manage the risk of these events is more important than ever.
Nigel McKeverne, Associate Director, Climate Solutions, Morningstar Sustainalytics:
“Climate change is raising the frequency and severity of weather events and putting them front and center in the minds of investors. For example, flood risk today is greater than it will be in the long term, depending on location.”
Robert Edwards, Director of ESG Product Management, Morningstar Indexes:
“Climate-based indexes will continue to evolve, especially as regulation and data mature. We fully anticipate that climate indexes will include transition and physical risk requirements in the future.”
The full roundtable discussion – ‘Minimising Exposure to Physical Risks in Passive Strategies' - which included leaders from Franklin Templeton, Northern Trust Asset Management, Phoenix Group, BNY Mellon Investment Management, London CIV, Amundi, State Street and Ninety One, can be found below.
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