This topic was tabled.
There have been numerous articles in the business press about the impact of climate change on business and investing. Lots of talk about CC at Davos.
It is more complicated than buy green, sell brown. Think
- ratings agencies
- attracting young employees
- consumer boycotts
- government regulations
- investor divestitures
- carbon taxes
- real estate
- muni bonds
- insurance
- PSGE was bankrupted by the fires. Unimaginable a couple of years ago.
- I was in Council Bluffs last fall. The spring floods never receded. Farmers couldn’t plant, hence could pay their taxes. Yet the municipalities have the fixed costs of schools, police, etc.
- Think of the cost of rebuilding roads, airports, ports. All the NY airports are on low ground.
- Blackrock’s & others new ESG funds.
It isn’t all defensive – there are opportunities.
No matter what you believe about climate change, it will impact your portfolio.
Here is a link to an academic paper from NYU. Sunil will explain the equation on p6.