The Importance of Climate Risks for Institutional Investors

The Importance of Climate Risks for Institutional Investors

Philipp Krüger, Zacharias Sautner, Laura Starks

Series number :

Serial Number: 
610/2019

Date posted :

July 05 2019

Last revised :

September 27 2019
SSRN Share

Keywords

  • Climate Risks • 
  • ESG • 
  • institutional investors

According to our survey regarding climate-risk perceptions, institutional investors believe these risks have financial implications for their portfolio firms and that the risks have already begun to materialize, particularly regulatory risks.

Many of the investors, especially the long-term, larger and ESG-oriented ones, consider risk management and engagement, rather than divestment, to be the better approach for addressing climate risks. Although the investors believe that some equity valuations do not fully reflect climate risks, their perceived overvaluations are not large.

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Authors

Real name:
Philipp Krüger