Comment on new report about climate change implications for strategic asset allocation

Welcoming the publication today of a new report by Mercer on ‘Climate Change Scenarios – Implications for Strategic Asset Allocation‘ (to which the Grantham Research Institute contributed), Dr Simon Dietz, Deputy Director of the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science (LSE), said:

“Institutional investors, like pension funds, look after trillions of dollars of employees’ savings worldwide. At the same time, solving the climate problem through cutting carbon emissions and adapting to changing temperatures, rainfall patterns and sea levels will also require trillions of dollars of investment, cumulatively. That is why this report is so important; it is one of the first of its kind, analysing the implications of climate change and climate-change policies for institutional investors at the total-portfolio level, and giving rise to suggestions for how they could manage the risks and exploit the opportunities that climate change brings.”

Notes for Editors

1. The Grantham Research Institute on Climate Change and the Environment was launched at LSE in October 2008. It is funded by The Grantham Foundation for the Protection of the Environment.