Do asset prices fully reflect climate risks and opportunities? Do asset prices fully reflect climate risks and opportunities? Do asset prices fully reflect climate risks and opportunities?

Are capital markets adequately pricing climate risks and opportunities? As the transition to a low carbon economy rapidly accelerates against a backdrop of increasingly severe climate-related events, this is not an academic question.

The mispricing of future climate-related impacts could make it harder for companies and investors to manage climate risks, hinder efforts to transition to a low-carbon economy, and expose businesses and investors to the risk of a disruptive repricing of traded instruments. 

Do asset prices fully reflect climate risks and opportunities? examines recent empirical evidence regarding the pricing of climate risks by the capital markets, explores the opinions of senior investment professionals in this regard, investigates the underlying policy, time horizon and data availability challenges, and highlights guidance available for companies and investors to address these challenges.