A spate of recent extreme weather events - from hurricanes and wildfires in the U.S. to heat waves in Europe - has put a spotlight on climate-related risks. Yet, climate-related portfolio risks have been hard to pinpoint - until recently. Advances in climate and data science now allow us to assess the financial risks on a localized level.
Chart of the week
Estimated U.S. GDP impacts under "no climate action" scenario, 2060-2080
Sources: BlackRock Investment Institute, with data from Rhodium Group, March 2019. Notes: The map shows the projected GDP impact in 2060-2080 on U.S.