Tower Watson, a global company specialized in risk management, is actively evaluating the financial risks of climate change to investors. Historically, too little attention has been paid to the risks of a “carbon bubble".Tower Watson aims to unveil the potential impacts that the warming climate poses to those who have invested in fossil fuels.
The US head-quartered firm is not yet ready to provide any concrete recommendations but offers possible measures for investors who recognize the need for action. One “natural hedge" suggested is to channel a part of investments into companies that are active in the field of renewable energy. Tower Watson is currently collaborating with various think tanks and analysts as to better evaluate the impacts of climate change on investment portfolios and to provide insights for investors to help them make more informed decisions. The need for means to better understand the climate impact of investment portfolios has never been more important.
(Source: Neue Zürcher Zeitung, NZZ)