Climate change deniers will not go away anytime soon. But the damage is real, and investors should follow the smart money and push for their portfolios to be prepped for the risks that worsening natural disasters and extreme temperatures bring.

SINGAPORE (Apr 22): As awareness about climate change and its ill effects grows, many investors are shunning businesses that have an obviously negative impact on the natural environment. But most have yet to work out whether their money managers are actually helping them manage the risks to their portfolio that come from the actual effects of climate change. “It’s not something I look for in a fund. I just look [at whether] they are investing in anything that causes harm, like mining and fossil fuels,” says Jacob Puthenparambil, co-founder of communications firm Redhill.

“I don’t want them to invest in the fossil fuel industry for sure,” says space engineer Akshay Gulati, co-founder of satellite servicing company Infinite Orbits. But, as he tells The Edge Singapore, he does not have time to look into how his fund manager manages climate risk. “I trust the manager to grow my money, and that is enough of a headache to build that trust.”

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