Bold Climate Policy Is Coming. Investors, Take Note

A group of investors that manages $80 trillion in assets forecasts bold policy action on climate by the mid-2020s. What will such action mean for capital markets and economies?

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Principles for Responsible Investment, a London-based organization focused on socially responsible investment, has introduced a dramatic vision of a global response to climate change. PRI, which is supported by the United Nations and a consortium of global investors, believes that by the middle of the next decade national governments will be compelled to take major policy actions to address climate change.

The shift, which PRI calls the Inevitable Policy Response, will fundamentally reorient the global economy and drive investment away from industries that are dependent on fossil fuels, and toward less carbon intensive activities. The policy shift will come quickly, disrupting financial markets, and overriding the assumption that industry and economies will have time to gradually adapt to the pricing of climate risks.

Nathan Fabian, Chief Responsible Investment Officer with PRI, discusses the drivers, timing and economic impacts of an expected shift in climate policy.

Nathan Fabian is Chief Responsible Investment Officer with Principles for Responsible Investment in London, UK.

Related Content

The Inevitable Policy Response Theory  https://kleinmanenergy.upenn.edu/blog/2018/10/03/inevitable-policy-response-theory

Climate Policy Won’t Work Without Considering Labor https://kleinmanenergy.upenn.edu/blog/2018/09/17/climate-policy-wont-work-without-considering-labor

Texas Sea Wall Shows Inadequate Disclosure on Climate Risk https://kleinmanenergy.upenn.edu/blog/2018/08/28/texas-sea-wall-shows-inadequate-disclosure-climate-risk

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