Shifts & Narratives #17

Wednesday 11 May 2022

Today climate change is arguably the most critical long-term challenge that humanity is facing. “Climate action failure” is not only the top long-term threat in the World Economic Forum’s Global Risks Report for 2022, but is also a key element for investors to factor in when building long-term assumptions on the economy and markets. Dealing with the changes driven by the energy transition is not about mere minor adjustments on some macroeconomic variables. It requires a complete rethinking of asset class returns forecasting and brings major implications for investors.