Climate change - hedging risk and investing

Rise of ESG in fund screening

Although ESG investing is not (yet) as large a proportion of responsible investing as exclusionary screening, it is growing more quickly and most people expect this to continue, writes Patrick Norwood, insight analyst at Defaqto.

Climate change usually refers to the growing accumulation of 'greenhouse gases' in the Earth's atmosphere as a result of human activities since the beginning of the industrial revolution and the steady increase in the planet's temperature (or 'global warming'), which is believed to be a result of the increase in the concentration of carbon dioxide in the atmosphere. Given the global concerns about the many harmful effects of climate change, there have been several attempts internationally to reduce greenhouse gas emissions, such as the Kyoto Protocol and more recent Paris Agreement. T...