Which weather events are most concerning to you and which governments do you think are best positioned to adapt to the growing risks of climate change?
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Whether global leaders saying “sustainability,” “climate,” or “ESG” out loud, it’s clear these materials risks are top of mind. The World Economic Forum’s latest annual global risks report lists extreme weather events, biodiversity loss, critical change to Earth systems, natural resource shortages, and pollution as among the biggest risks ranked by severity.
These align closely with the findings from a survey last year by our Institute of over 350 senior investment professionals on how climate change impacts investment decisions. As the charts below suggest, severe weather events are intensifying and so are their economic impacts.
The climate-related physical risks keeping investors up at night (% of respondents)
Source: “What the Market Thinks: A Climate Risk Survey,” MSCI Sustainability Institute, October 2024
What climate-related physical risks could spur government action? (frequency of mentions)
Source: “What the Market Thinks: A Climate Risk Survey,” MSCI Sustainability Institute, October 2024
How likely are governments to invest sufficiently in climate adaptation? (% of respondents)
Circles represent the median answer. Percentages might not total 100% because of rounding.
Source: “What the Market Thinks: A Climate Risk Survey,” MSCI Sustainability Institute, October 2024