The risks of climate change are already impacting investors, with increasingly frequent climate disasters like wildfires, drought, flooding and heatwaves threatening business operations and properties across the world. Many investors are now choosing to funnel their money into investments that address climate change risk, and asset managers are rushing to meet the demand. Investors last year put $20.6 billion into funds focused on environmental, social and governance — or ESG — issues, according to Morningstar data, almost quadruple the record the year prior. In the U.S., money managed with sustainable investing strategies now comprises over a quarter of total investment assets under management, according to the Global Sustainable Investment Alliance. Bank of America also estimates that in the next two decades, there will be over $20 trillion of asset growth in ESG funds, in which climate change investment is a major component. The focus on climate risk is driven largely by a younger generation of investors who want their money invested with sustainability in mind. They also want to avoid companies with bad track records on ESG issues that could face future fines. To view the full article visit CNBC.
