Institutional investors in Switzerland are showing a growing interest in sustainable investments. Along with this, there is a growing need for information, both among pension funds and foundations, as well as among experts from insurance companies and other institutional investors. Swiss Sustainable Finance has therefore recently published a handbook on sustainable investments for Swiss institutional asset owners.
The handbook (available in German and French) is the result of a close collaboration with over 30 expert authors and contributors. South Pole Group's Dr. Maximilian Horster, Director Financial Industry, is one of the expert authors who has contributed with an article on "Climate change and related risks for investors" (pp. 84 - 87). The article expose how climate change regulation and its effects pose increasing risks to investments, and the range of tools and strategies available for investors in order for them to understand, measure and mitigate such risks.
"Climate impact measurement for investments is becoming a standard in many countries. With governments' commitment towards a low carbon economy (COP21) and increasing societal focus on the topic, understanding the impact of climate change regulation is important for institutional asset owners. They proactively embrace measurements and strategies to address climate change and related legislation both as a risk and as an opportunity" writes Maximilian.