GARI Investor Guide to Physical Climate Risk and Resilience

The impacts of climate change remain a new topic for many investors. How to think about the many implications of droughts, floods, storms and sea level rise on complex financial portfolio and assets?

The Investor Guide to Physical Climate Risk and Resilience, published by the Global Adaptation and Resilience Investor (GARI) working group, provides a  “plain language” introduction for investors to physical climate risk and resilience. It describes physical climate risk and resilience, explains why it matters to investors, and suggests practical actions investors can take.

Specifically, the guide suggests investors can manage the physical effects of climate change on investments, and seize climate-resilience investment opportunities in three ways: investigating the physical impacts of climate change on asset values, requiring asset managers and advisors to consider climate risk, and allocating capital to climate-resilient investment.

As evidence of climate change’s impact on all asset classes mounts, investors should consider starting to understand, assess, and mitigate their climate risk exposure. The time has come to address climate risk.

Download the GARI 2017 Investor Guide

Read the press release:

‘TIME HAS COME’ TO ADDRESS CLIMATE RISK, SAY GLOBAL INVESTORS AT PARIS SUMMIT

PRACTICAL INVESTOR GUIDE TO PHYSICAL CLIMATE RISK AND RESILIENCE PUBLISHED BY GLOBAL ADAPTATION & RESILIENCE INVESTMENT WORKING GROUP AT ONE PLANET SUMMIT IN PARIS

Paris, France – December 12, 2017: The “time has come” for investors to address climate risk, concludes the Investor Guide to Physical Climate Risk and Resilience released today by the Global Adaptation & Resilience Investment Working Group (GARI) at the One Planet Summit in Paris, France, where nations of the world are meeting to advance the aims and ambitions of the Paris Agreement. The summit is being hosted by the President of the French Republic, Emmanuel Macron, the President of the World Bank Group, Jim Yong Kim, and the Secretary-General of the United Nations, António Guterres.

The GARI Investor Guide provides a “plain language” introduction for investors to physical climate risk and resilience. It describes physical climate risk and resilience, explains why it matters to investors, and suggests practical actions investors can take.  Specifically, it suggests investors can manage the physical effects of climate change on investments, and seize climate-resilience investment opportunities in three ways: investigating the physical impacts of climate change on asset values, requiring asset managers and advisors to consider climate risk, and allocating capital to climate-resilient investment.

“We believe the time is now for investors to consider both physical climate risk as well as the opportunity to invest in climate resilience,” said Jay Koh, Managing Director of The Lightsmith Group, Chair of GARI, and a lead author of the GARI Investor Guide. “The investment risks and opportunities created by climate change are immediate and increasing.”

“Leading investors have started using practical tools today to screen and assess their equity, credit, and real asset portfolios for physical climate risk,” stated Emilie Mazzacurati, CEO of Four Twenty Seven and another lead author of the GARI Investor Guide. “There’s no need to wait to understand the impacts of climate change on financial markets.”

“Understanding physical climate risk can guide investors’ decisions today, both to reduce exposure to risk and seize climate resilience investment opportunities,” concluded Chiara Trabacchi, Climate Finance Specialist at IDB Invest, and the third lead author of the GARI Investor Guide. “The Investor Guide is a tool for investors that want to anticipate the risk – rather than experience it – and to deliver long-term value.”

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ABOUT THE GLOBAL ADAPTATION & RESILIENCE INVESTMENT WORKING GROUP (GARI)

The Global Adaptation & Resilience Investment Working Group (GARI) is a private investor-led initiative announced at COP21, the global climate summit in Paris in 2015. GARI is a partner of the UN Secretary General’s A2R Climate Resilience Initiative. GARI has brought together over 150 private and public investors, bankers, leaders and other stakeholders to discuss critical issues at the intersection of climate adaptation and resilience and investment with the objective of helping to assess, mobilize and catalyze action and investment. It released a first discussion paper, “Bridging the Adaptation Gap,” at the COP22 Marrakesh global climate summit in 2016. For more information on GARI, please see: www.garigroup.com.