The evidence of climate change’s impact on human health is everywhere. For instance, in the Middle East, climate change is intensifying summer extremes. According to the UN, heat now claims 230,000 lives annually in the Arabian Peninsula and the Fertile Crescent, making it a bigger killer than regional conflicts – and exacerbating other risks. Climate change – as well as air and water pollution – is now at the heart of human wellness.
But climate change and rising pollution is also raising economic and investment red flags. In a significant move, Blackrock – the world’s largest asset manager – has warned investors that the impact of climate change is “underappreciated and under-priced.”
As extreme weather events progressively become the norm, Blackrock says that investors should protect their portfolios due to the physical effects, technological changes, and the regulatory and social response provoked by climate change. In particular, it estimates that the companies that pollute the most will become less valuable.