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Report

Understanding physical climate risks and opportunities

This report of the Institutional Investors Group on Climate Change (IIGCC) aims to inform investors about how they can integrate the risks and opportunities presented by the physical impacts of climate change into their investment processes. Leading investors have contributed to the work from IIGCC, developed with specialist consultants Acclimatise and Chronos Sustainability, and support of the Universities Superannuation Scheme.

Key points

Thiq newly published guidance aims to help investors to:

  • Better understand the investment implications – both risks and opportunities – resulting from the physical impacts of climate change.
  • Take practical steps to identify, assess and manage climate-related physical risks across their portfolios, through the approaches covered in the guidance.
  • Identify ways to invest in solutions that support greater resilience to climate change as well protecting investments from physical-climate related risks. Both approaches are key to strengthening broader societal adaptation to climate change.
  • Draw on additional available tools and data sources in identifying and assessing specific risks, and opportunities, across different asset classes.