Understanding Climate Implications for Assets in Long-Term Portfolios

Given the materiality of climate change as financial risk, nuanced measurement of portfolio vulnerability and company impact is needed, considering differences in regional exposures and asset classes.

As climate change acceleration continues to disrupt global economies, understanding its long-term impact on asset valuations is no longer optional but strategically essential. Given the materiality of climate change as a financial risk, nuanced measurement of portfolio vulnerability and company impact, considering differences in regional exposures and asset classes.

This session will convene leading asset owners and research experts to examine how climate risks are reshaping investment decisions, particularly for long-term assets such as infrastructure with life cycles exceeding 70+ years.  From the asset owner perspective, the discussion will highlight current practices in assessing physical and transition risks, the tools being used, and the persistent gaps in forward-looking, granular data needed for accurate climate-adjusted valuations.On the research side, experts will present innovative models that incorporate climate scenarios, carbon pricing, physical risk, and insurance costs. These models aim to bridge the data gap by connecting micro-level insights with portfolio-level asset allocation strategies. Together, these perspectives will offer practical insights into building more resilient, future-ready portfolios in the face of accelerating climate change.