Fiona Frick: Incorporating climate transition into capital market assumptions

Delay will be costly

Two recent events have demonstrated the urgency of transitioning to a new energy paradigm.

First, the Ukraine war, which has highlighted the importance of freeing ourselves from energy dependence on Russia, which currently accounts for 40% of European sources. Second, the UN IPCC report (published in April), which shows that without transformation, the world is heading for a 3.2ºC rise in temperature by 2100. The next three years will therefore be critical as we attempt to rapidly decarbonise the global economy and transition to net zero. Although the speed of the transition is not yet clear, transition must happen and investors should therefore start integrating its impact...