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How might climate change be factored into an investment plan?

The detailed question was:

I am interested in risk management and pricing climate risk. Divestment movements are gaining considerable momentum - particularly in the rest of the world - and posing greater risk of stranded assets. My assumption is that this is not an industry specific but a global market risk - how could this best be managed or factored into an investment plan?

I have no special insights into the issues thrown up by climate change.


You talk in your question only about risk, but surely climate change also throws up opportunities.


As a bottom-up stock-picker myself, I think the impact of climate change as a risk and an opportunity would be assessed at a stock selection level and each case would be different to some extent. So, you would assess each case using your usual analysis of threats/disruptors and opportunities for the industry and the specific business you are analysing.


I do not use a top-down approach, so I am not sure exactly how you might go about assessing climate change if you use that method.