Insights   •   Climate

Why Climate Should Be Your ESG Priority

We believe climate change is one of the biggest risks in investment portfolios today — and one of the greatest opportunities. In this article, we outline why.

Head of Investments, Australia

Climate Change is the ESG issue

Numerous academic studies suggest that Environmental, Social and Governance considerations are material to both risk and return for investors1. But good ESG ratings are complex to build; important issues for one industry may be irrelevant for another industry2. So, out of all the ESG issues you could consider, why do we believe climate change is so important? Because there is no other ESG issue that matches climate for the size of the required global response and the clear linkage to financial outcomes via carbon pricing.