Schroders, a global investment manager with $1.1 trillion assets under management, launched its Climate Adaptation Investment Framework. The framework helps investors assess opportunities arising from growing demand for infrastructure, technology, products and services that build resilience to physical climate impacts.
Developed by Schroders in collaboration with CalPERS, it evaluates 102 climate adaptation activities – specific actions and solutions designed to address actual or expected climate impacts – spanning infrastructure, technology, products and services. The framework aims to provide a consistent way to compare the economic benefits these activities may generate and where those benefits may translate into compelling investment opportunities.
From strengthening infrastructure against floods and extreme weather to investing in resilient buildings, water systems and early-warning technologies, businesses and governments are directing greater attention to adapting to physical climate impacts. According to Boston Consulting Group, annual demand for climate adaptation and resilience solutions could reach $0.5 trillion to $1.3 trillion by 2030. However, not all of that potential spending will necessarily translate into viable investment opportunities – a distinction the framework seeks to help investors navigate.
Also Read: Mercari Adds Point Investment to Crypto Trading Service
“Investors have traditionally viewed the physical impacts of climate change primarily as a risk to their portfolios, but there is another side to that equation,” said Marina Severinovsky, Head of Sustainability, North America at Schroders. “Climate adaptation is increasingly becoming an economic and investment consideration in its own right, as businesses, governments and communities respond to a changing physical environment. Our aim with this framework is to give investors a clearer lens through which to understand how those changes could shape investment outcomes over time.”
Source: BUSINESSWIRE


