Home Views Commentary

Turning up the heat

The Edge Singapore
The Edge Singapore4/22/2019 8:0 AM GMT+08  • 3 min read
Turning up the heat
SINGAPORE (Apr 22): Most investors have traditionally focused on ensuring their portfolios generated the maximum amount of returns on their capital. But attitudes, especially among institutional investors, are changing. The focus now is on mitigating risk
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Apr 22): Most investors have traditionally focused on ensuring their portfolios generated the maximum amount of returns on their capital. But attitudes, especially among institutional investors, are changing. The focus now is on mitigating risk rather than maximising returns. French investment manager Amundi Asset Management puts it down to a combination of stricter regulations everywhere and the inability to bear significant losses — particularly in the case of pension funds — a legacy of the global financial crisis and European sovereign debt crisis.

And the risks that are apparently top of mind for institutional investors are those in relation to climate change. In the World Economic Forum’s annual Global Risks Perception Survey, respondents were most concerned about the impact of extreme weather events, natural disasters and the failure of climate-change mitigation and adaption.

To be sure, the impact of climate change on businesses has been well documented. The main costs of extreme weather events is the damage wrought to physical infrastructure such as roads, ports and factories, which in turn disrupts business operations and supply chains. What’s more, businesses located in particularly vulnerable areas, such as on the coastal areas where most development is anyway, run the risk of being uninsurable. That in turn raises the question of whether they are viable at all.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.