Investors Can’t Entirely Hide From Climate Change, Says Study

There is no place for an investor to hide when global warming comes knocking in its full glory, is the conclusion of a new academic study out of the University of Cambridge. In a report aptly titled “Unhedgeable Risk: How climate change sentiment impacts investment,” researchers claim investment portfolios could witness 45 percent of their value vanish by 2020 due to climate change. There are hedging solutions for near 50 percent of a portfolio, but understanding what and how to hedge depends in part on government action — or inaction — on the issue.

No investor is immune from risks associated with climate change

The common institutional investment portfolio...