The Rewards of Resilience: Why it pays to price physical climate risk into infrastructure investments
2 min read 16 January 2024
The impacts of climate change are growing exponentially, putting asset owners and investors under pressure to incorporate new risk dynamics into asset management and investment strategies.
With their large scale and long-term lifespans, infrastructure assets are uniquely exposed to the physical impacts of climate change. And as extreme weather events continue to grow in frequency and severity, the risks to these assets are also rising rapidly. How can organizations account for these risks in their asset management and investment strategies?
In this paper, we explore how private equity and infrastructure funds can build a more nuanced understanding of physical climate risks, informed by asset-specific vulnerabilities and geographical considerations.
By taking the action that’s needed to price in the physical risks of climate change and meaningfully address them, asset owners and investors stand to reap the rewards of resilience.
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