The report has several key findings. Clearly, “climate change will give rise to investment winners and losers.” Some industries, like coal, will likely see average annual returns over the next decade “eroding between 26% and 138%,” depending on how aggressively the world attempts to fight climate change. Other industries, like renewables, could see average annual returns increase by up to 97 percent over the 10-year period — if the world does seriously move toward a 2°C pathway coming out of the Paris climate talks this December.
The report identifies three phases investors may go through — “Climate-Unaware Future Takers,” “Climate-Aware Future Takers,” and finally “Climate-Aware Future Makers”:
A key goal of the report is to get investors to “progress along these phases to the extent they can.”
Barry Ritholz: “In the real world, climate-change deniers are and will be giant money losers.”