Climate Change: A Growing Source of Investment Risk and Opportunity
by Jeff Finkelman, Managing Director, Sustainable Investing, Fiduciary Trust International
Climate change represents a growing source of long-term investment risk and opportunity. In the following report, our sustainable investing team explains what you should know about climate change, how it may affect your investments, and the steps you can take today to build a net-zero portfolio.
The choice the world makes – whether to reduce GHG emissions and mitigate the effects of global warming or adapt to its consequences – will shape the climate-related risks investors will face in the years ahead. Inaction will increase the “physical risks” of climate change, such as extreme weather, sea level rise, and wildfires. Mitigation efforts will reduce the physical risks but increase the “transition risks” associated with a shift to a low-carbon economy.
Yet some assets are poised to benefit from a shift towards low-carbon energy. The United Nations estimates that $125 trillion of investment will be needed to achieve the world’s climate goals, 70% of which could come from the private sector. Most of that financing will be used to increase clean energy generation.
Learn more about how climate change may affect your portfolio.
About Fiduciary Trust International
Fiduciary Trust International, a global wealth management firm headquartered in New York, NY, has served individuals, families, endowments and foundations since 1931. With over $86 billion in assets under management and administration as of June 30, 2022, the firm specializes in strategic wealth planning, investment management and trust and estate services, as well as tax and custody services. The New York-based firm and its subsidiaries maintain offices in Coral Gables, FL, Boca Raton, FL, St. Petersburg, FL, Radnor, PA, Lincoln, MA, Los Angeles, CA, San Mateo, CA, San Francisco, CA, Washington, DC, Wilmington, DE, Reston, VA, and Atlanta, GA. For more information, please visit fiduciarytrust.com, and for the latest updates, follow Fiduciary Trust International on LinkedIn and Twitter: @FiduciaryTrust.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers boutique specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives, and multi-asset solutions. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has 75 years of investment experience and approximately $1.4 trillion in assets under management as of August 31, 2022. For more information, please visit www.franklintempleton.com.
