Climate change is likely to prove one of those tectonic forces that gradually but powerfully changes the economic landscape in which our clients operate and one that causes periodic sharp movements in asset prices.
Sectors particularly affected include: Utilities, Oil and Gas, Metals and Mining, Insurance, Pharmaceuticals, Building and construction and real estate.
Given the size of the investment management industry, investment companies are in a strong position to influence business managers to focus on these issues .
There will be a large creation and re-distribution of shareholder value in the transition to a low carbon economy – there will be winners and losers at sector level and within sectors at company level.
The winners are more likely to be those businesses that take the time to understand and address this complex area.”