Climate change and your money: how will environmental pressures affect your investments?

Climate change is on the agenda for many countries and companies, and it should increasingly be a concern for investors too

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The world we live in is changing. We're part of a growing population with growing levels of affluence resulting in an ever increasing demand on our environment for natural capital, in other words water, clean air, energy, food and forestry. Alongside this is the threat of climate change – a consequence of our fossil fuel powered economies.

When in abundance, this natural capital is often given no economic value, and companies and society regard it as a free good. However once it becomes scarce, the value of these environmental goods becomes all too evident, through competitive pricing, regulation or taxation.

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