Why climate change is an investment risk

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Hardly a day goes by without encountering a news story about ESG, climate change, the just energy transition, and, lately, COP27. But how does this impact investments?

This short video (3 minutes, 24 seconds), which is the first in a six-part series, introduces climate risk and why it matters to investors. It explains the two main types of risk presented by climate change: physical risk and transition risk.

 

The video was developed for the South Africa-UK PACT project, which has been partnering with South Africa since June 2020 to support the acceleration of the just transition and a low-carbon economic recovery after the Covid-19 pandemic. UK PACT (Partnering for Accelerated Climate Transitions) is a flagship programme under the UK’s International Climate Finance portfolio.

Regarding COP27, political and trend analyst JP Landman has written a concise “explainer” of what South Africa committed to at this year’s climate change conference, as well as the implications for the country’s energy sector. Click here to read it.