Money Managers Try to Put a Price on Climate Risk. It's Not Easy.

Money managers are struggling to incorporate the risks of climate change into their investment strategies due to the lack of comprehensive environmental data, inconsistent corporate disclosures, and the interdisciplinary challenge of linking climate science to financial returns. However, some early adopters are hiring climate scientists to help them understand the impact of climate change on investing. These investors use climate change data to develop models that determine which companies will be winners or losers in a world where weather disasters are increasing. The research suggests that markets are currently underpricing the physical risks of climate change. [Extracted from the article]