Schroders has integrated climate change into its global investment returns forecasts for the next three decades, uncovering the stark impact global warming is set to have on international markets.
The research report, Climate change and financial markets, is the first time the impact of climate change has been integrated across these calculations. Schroders has developed a three-stage process for quantifying the likely impact of climate on long-term returns. These steps encompass quantifying how output per capita will change as temperatures rise, the economic impact of the steps taken to mitigate temperature increases and understanding the potential costs of stranded energy assets.
Furthermore, Schroders’ Climate Progress Dashboard, Carbon Value at Risk and Physical Risks of Climate Change modeling all underpin the fund manager’s approach to navigating risk to b
