Extreme Weather: towards pricing climate risk

The 2017 Atlantic hurricane season caused estimated damages of $265 billion. Given links between extreme weather and global warming how close might we be to some companies or sectors being held liable, at least partially, due to their activities? The answer may be that this is closer than many expect.

Environmentally-focused investors often consider climate risks. Research suggests that share prices in carbon-intensive industries may not reflect potential liabilities for damages from extreme weather events. Investors concerned about the consequences of global warming may also be unaware that they can actively nudge companies away from destructive behaviours towards a more constructive role.


 

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About Dr Quintin Rayer

Quintin is a Chartered Fellow of the Chartered Institute for Securities and Investments, a Chartered Wealth Manager and holds a Physics degree from Imperial College London and a Physics doctorate in atmospheric physics from Oxford University and is a Fellow of the Institute of Physics.