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SEEING THROUGH THE CLIMATE SMOG: WHY INVESTORS CARE FOR A CLEAR COP26 OUTCOME

by Gerrit Dubois,
Responsible Investment Specialist at DPAM

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For the first time ever, this year’s Nobel Prize in Physics was awarded to Climate Scientists. Syokuro Manabe (JP) and Klaus Hasselmann (DE) won the price for their work on climate modelling and complex systems. Moreover, their research inherently contributed to both the accuracy and credibility of the Intergovernmental Panel on Climate Change’s (IPCC) assessment reports. But how does this news relate to investor activities? And is the modelling in the IPCC’s 6th assessment report sufficiently clear for financial market players to manage and mitigate future climate-related risks? COP26 will hopefully bring us some much-needed answers.

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