Investors are Waking Up to Climate Risk 

The severity of this summer's extreme weather events is creating a new sense of urgency for action to achieve a net-zero global economy by mid-century to avoid the most severe impacts of climate change. To achieve this, global carbon emissions must decline rapidly from their current levels. The changes required have huge implications for the energy sector, which is already facing mounting risks. Sensing a sea change in the importance of understanding climate risk in assessing firm valuation, institutional investors, large blockholder asset managers, and other investment advisors are clamoring for more detailed sustainability information and climate friendly stocks. Amy Myers Jaffe discusses the change in strategies across the energy investment landscape from private equity firms to large asset owners to the energy companies themselves and what it means for the future of the planet.