Tune in to the news these days, and there is no shortage of headlines on extreme weather events, ranging from earthquakes and hurricanes to wildfires and droughts, which are having devastating effects on both people and property.
Growing awareness of the significant financial impacts that can arise from climate-related events is driving resiliency more to the forefront. According to Aon, there were 421 notable natural disasters globally last year, which resulted in insured losses that topped $313 billion. That is the tip of the iceberg when also accounting for uninsured losses and business disruption. With a protection gap of 58 percent, most disaster losses were uninsured.
“Climate risk is a clear emerging priority, arguably the biggest and most relevant for infrastructure ESG strategies, because it has a genuine bottom-line impact,” says Natalie Sinha, sustainability analyst, infrastructure with UBS Asset Management. Fund managers also are feeling more pressure f