Should major investment decisions factor in climate change?
Australia’s largest investment consulting firm JANA has called on investors to factor climate change into major investment decisions.
The firm has warned investors that the impact of climate change and unclear policy responses by governments, including Australia’s, pose a significant risk to returns.
JANA has urged investors to ensure that climate-related financial risk is adequately considered and monitored, as climate change is likely to influence all parts of the global economy.
The report, ‘Climate change - implications for investment strategy’, demonstrates that current policies on climate change, if continued, will have a detrimental impact on many investments. It incorporates the potential costs of physical changes resulting from climate change and the impact of policy changes.
The transition to a less carbon intensive global economy is inevitable, presenting medium and longer-term financial risks and opportunities for investors, according to JANA’s Head of Responsible Investment Research, Tim Conly.
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