This video is the latest instalment in ESG Intelligence, a series brought to you by Invesco’s Global Debt Team. The team manages over $6 billion in international fixed income, and is passionate about sustainability and impact in emerging markets.
Recent climate data suggests that the pathway to limiting global warming to 1.5OC is narrowing – and narrowing quickly.
We could see a future with declining biodiversity and crop yields, increases in coastal flooding, and economic disruption resulting in a curtailment in global GDP. Not to mention the human and social toll.
In this video, we discuss the role climate adaptation will play in addressing this challenge, before delving into the opportunities for investors.
Climate adaptation refers to actions taken by governments, non-governmental organisations (NGOs) and companies to adjust and adapt to the current and future impact of climate risks.
The goal of climate adaptation is to render communities and ecosystems more resilient to the detrimental effects of climate impacts.
Climate transition refers to the steps that organisations and governments are taking to reduce emissions and move towards a low carbon economy.
Investing in climate resilience today will help mitigate future climate-related liabilities and costs, both direct (such as physical damage to assets) and indirect (such as higher insurance costs).
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
All data is provided as at 31 October 2023, sourced from Invesco unless otherwise stated.
This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.
Views and opinions are based on current market conditions and are subject to change.
