Climate Action Trend

In total, weather-related natural disasters have caused losses of some $4.2 trillion since 1980 and killed nearly a million people. In response, nations have set out a series of regional and global mitigation initiatives such as the Paris agreement and the Net-Zero 2050 consensus to reduce greenhouse gases emissions, the leading suspect in climate change.

While the goal to reverse climate change is far-fetched, 75% of countries have already begun their carbon-transition and a climate adaptation, investing in reducing vulnerability for the harmful effects such as sea-level encroachment, extreme weather events and food insecurity. The UN estimated that yearly climate adaption costs could reach between $140 billion and $300 billion by the end of the decade and between $280 billion and $500 billion by 2050.

With billions of dollars poured in mitigation and adaptation efforts, options for integrating climate change into investment strategies have expanded. Investors have become more environmentally conscious and are focusing on investments in companies aligned with their financial and impact goals.