Investors reward firms tackling climate change amid UN warning

climate changeThe investment community is rewarding corporates that are tackling climate change amid warnings from leading scientists that only 12 years remain to limit global warming to 1.5 degrees above pre-industrial levels. A report released by the UN Intergovernmental Panel on Climate Change (IPCC) said the impacts of climate change, from floods to extreme heat and poverty, will be worse if the globe exceeds temperatures by half a degree (to 2C). In addition, “any increase in global warming is projected to affect human health, with primarily negative consequences,” the IPCC said. The report was finalised at a meeting in South Korea last week. With drastic changes needed to curb temperature rises, asset managers warned that climate change was not just a government issue but a collective one which required action from society as a whole. “We are seeing a growing willingness across every element of society to contribute proactively to a more efficient and sustainable world – with corporates at the forefront of this change,” said Thomas Sørensen and Henning Padberg, portfolio managers of the Nordea 1 – Global Climate and Environment Equity fund. “The economic incentive, where it makes economic sense for both consumers and corporates to invest in climate solutions, has clearly reached an inflection point. Companies understand improving sustainability is vital to remaining competitive in today’s world.” Indeed, climate change can no longer be considered an anomaly after a number of regions around the world felt the effects of a scorching summer. “This is why investors really cannot ignore climate change,” said Esmé van Herwijnen, responsible investment analyst at EdenTree Investment Management. ©2018 funds global asia

Executive Interviews

INTERVIEW: Giving peace a chance

Jan 11, 2019

As US-China tensions escalated in 2018, the leaders of the two economies met in Buenos Aires to agree a truce. Aidan Yao, senior emerging Asia economist at Axa Investment Managers, talks to Romil...

INTERVIEW: Operational challenges

Jun 09, 2018

Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.



Jan 11, 2019

Changes to regulation, US-Sino trade tensions and further steps by China to open its capital markets were some of the topics discussed by our panel. Chaired by Romil Patel in Hong Kong.

SINGAPORE ROUNDTABLE: Optimism versus caution

Oct 23, 2018

The impact of financial technology, developments in Asian passporting and the promise of new markets in Thailand were among the topics discussed by our panel. Chaired by George Mitton in Singapore.