Financial markets are underprepared for climate-related policy risks
A forceful policy response to climate change is not priced into today’s markets. Yet it is inevitable that governments will be forced to act more decisively than they have so far, leaving investor portfolios exposed to significant risk. The longer the delay, the more disorderly, disruptive and abrupt the policy will inevitably be.PRI, Vivid Economics and ETA have built a high conviction policy-based forecast of the financial impact of this Inevitable Policy Response (IPR), including the Forecast Policy Scenario:
How will it affect the economy?
Which sectors are most at risk?
What will drive financial impacts?