Sunday, May 1, 2011

Global warming and investment: Business climate adapts to meet Earth's changes


Deutsche Bank's global head of asset management, Kevin Parker, is adamant that investors should be shifting their asset allocation towards funds associated with sustainability. In the Deutsche Bank report, "Investing in Climate Change 2010", Parker says investing in climate change "produces outperformance", adding that the group showed that a 6% allocation to climate change would have outperformed by 0.7% a benchmark portfolio over the previous three to five years.
Mercer, the US-based consulting, outsourcing and investment firm, has created a "TIP Framework" to assess the risk and opportunity climate change has for their clients. The framework estimates the rate of global investment into green technology (T); the costs - in terms of food security and health - of environmental impact (I); and the cost of carbon as a result of global policy (P).

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