brief INSIGHT by Aberdeen Standard Investments

| The effects of climate change are impossible to ignore. Reports of record temperatures hit the news on a regular basis. Extreme weather events – such as storms, wildfires and floods – occur with ever greater frequency. The melting of ice sheets is clearly visible.

As the world’s population grows, demand for energy, greenhouse gas emissions and temperatures continue to rise. The scale of the climate change challenge is immense, the urgency to act unprecedented.

Investors – asset owners and fund managers – need to understand how these changes will affect the value of their investments. Assessing the risks and opportunities of climate change should form a core component of investment research, as well as environmental, social and governance (ESG) integration.

This involves gaining an in-depth understanding of how each company is exposed to material issues related to climate change, and what these companies plan to do to tackle these challenges.

That said, there are opportunities as well. The transition to a low-carbon economy will require large amounts of private capital to construct renewable energy infrastructure, low-carbon transport and improve energy efficiency. Investor who understand these opportunities could therefore proper, while still contributing to a more sustainable world.

Eva Cairns, Senior ESG Investment Analyst, explores how to unlock these opportunities in her paper Investing in a Changing Climate. You can find out more here.


more from Aberdeen Standard Investments

| disclaimer

The value of investments, and the income from them, can go down as well as up and investors may get back less than the amount invested. Past performance is not a guide to future results.

The above marketing document is strictly for information purposes only and should not be considered as an offer, investment recommendation, or solicitation, to deal in any of the investments or funds mentioned herein and does not constitute investment research. Aberdeen Standard Investments does not warrant the accuracy, adequacy or completeness of the information and materials contained in this document and expressly disclaims liability for errors or omissions in such information and materials. Any research or analysis used in the preparation of this document has been procured by Aberdeen Standard Investments for its own use and may have been acted on for its own purpose. The results thus obtained are made available only coincidentally and the information is not guaranteed as to its accuracy. Some of the information in this document may contain projections or other forward looking statements regarding future events or future financial performance of countries, markets or companies. These statements are only predictions and actual events or results may differ materially. The reader must make their own assessment of the relevance, accuracy and adequacy of the information contained in this document and make such independent investigations, as they may consider necessary or appropriate for the purpose of such assessment. This material serves to provide general information and is not meant to be investment, legal or tax advice for any particular investor. No warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the reader, any person or group of persons acting on any information, opinion or estimate contained in this document. Aberdeen reserves the right to make changes and corrections to any information in this document at any time, without notice. This material is not to be reproduced in whole or in part without the prior written consent of Aberdeen Standard Investments.


| issued in:

Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden: Aberdeen Asset Managers Limited, registered in Scotland (SC108419) at 10 Queen’s Terrace, Aberdeen, AB10 1XL. Standard Life Investments Limited registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Both companies are authorised and regulated by the Financial Conduct Authority in the UK.

Switzerland: Aberdeen Standard Investments (Switzerland) AG (“ASIS”). Registered in Switzerland under company no. CHE-114.943.983.

Registered Office: Schweizergasse 14, 8001 Zurich.