Headed to Climate Week NYC? Here is your cheat sheet with some of the latest numbers on severe weather and other physical risks, the energy transition and financial flows. With these facts in hand and Manhattan’s new congestion pricing in effect, you’ll move from one event to the next with ease.
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The next risk frontier
Floods, extreme heat and other physical risks are intensifying, impacting companies differently depending on the location of their assets and supply chains. For investors, assessing this location-specific exposure represents the next risk frontier.
13
Number of additional days of dangerous heat that New York City could face annually by 2050, if average global temperatures were to climb 3°C (5.4°F) above preindustrial levels. (MSCI Sustainability Institute)
Additional days of extreme heat (average % change by 2050, based on 3°C warming)
Source: MSCI ESG Research, data as of June 30, 2025, using MSCI GeoSpatial Asset Intelligence, based on ”Current Policies” scenario developed by the Network for Greening the Financial System.
USD 80 billion
Estimated global insured losses from natural catastrophes in the first half of 2025, almost double the 10-year average. (Source: Swiss Re Institute)
35
The number of business days of stock-price underperformance for companies with assets in the path of a hurricane, based on analysis of global hurricane events between 2022 and 2024. Firms at risk underperformed even before a hurricane made landfall, suggesting that investors gradually price in risk as damage assessments and business impacts become clearer. (Source: MSCI Research)
26%
The share of U.S. homes, representing USD 12.7 trillion in value, exposed to severe or extreme risk from flooding, wind or wildfire. (Source: Realtor.com)
50%
The amount by which premiums for physical-risk and natural-catastrophe protection are set to increase, reaching USD 200-250 billion globally, by 2030. (Source: Howden and Boston Consulting Group)
-0.4%
The amount less per year by which U.S. home prices in high-risk areas rose than in safer ones over the decade ended 2024. That marks a reversal from the prior decade and suggests the mortgage market has begun to price in risks such as floods, storms and extreme heat. (MSCI Research)
An uneven transition
The shift to a cleaner global economy is reshaping financial risk and opportunity in every industry, with pressures varying across sectors and countries. Countries face a deadline this month to submit new 2035 climate targets under the Paris Agreement, commitments that could help provide a clearer signal to markets in directing climate finance.
2.7°C (4.9°F)
Projected warming above preindustrial levels of the world’s listed companies, based on their aggregate emissions, sector-specific carbon budgets and climate targets as of June 30, 2025. (Source: MSCI Sustainability Institute)
26-35%
The estimated fall in U.S. greenhouse gas emissions by 2035 (relative to 2005 levels) under current policies, down from an estimated 38-56% reduction in 2024. (Source: Rhodium Group)
91%
The share of newly commissioned wind and solar facilities globally that are cheaper than the cheapest available form of fossil fuel generation. (Source: International Renewable Energy Agency)
>25%
The share of car sales worldwide this year that are expected to be electric vehicles. (Source: International Energy Agency)
18.5%
The share of listed companies that have a climate target approved by the Science Based Targets initiative as of June 30, 2025, an increase of 6.7 percentage points from a year earlier. (Source: MSCI Sustainability Institute)
26%
The share of listed companies worldwide that align with warming between 1.5°C (2.7°F) and 2°C (3.6°F) above preindustrial levels. Twelve percent align with warming of 1.5°C or less. (Source: MSCI Sustainability Institute)
Projected temperature alignment of G20 countries and the listed companies based in them (Implied Temperature Rise in ˚C)
| Sovereigns | Companies | |
|---|---|---|
| China | 3.8 | 3.3 |
| Australia | 3.4 | 3.3 |
| Canada | 3.3 | 2.6 |
| Saudi Arabia | 3.0 | 8.3 |
| United States | 2.9 | 2.7 |
| Russia | 2.6 | |
| Turkey | 2.2 | 3.3 |
| Italy | 2.2 | 1.8 |
| Argentina | 2.1 | |
| Brazil | 2.1 | 3.4 |
| Indonesia | 2.0 | 4.1 |
| Mexico | 2.0 | 2.1 |
| Germany | 2.0 | 2.0 |
| India | 1.9 | 3.2 |
| France | 1.9 | 2.4 |
| Japan | 1.9 | 2.4 |
| South Africa | 1.8 | 3.3 |
| United Kingdom | 1.8 | 2.3 |
| South Korea | 1.7 | 2.6 |
Source: MSCI ESG Research, data as of June 30, 2025. The ITR of companies listed in Russia and Argentina is not shown because the securities of companies listed there are not included in the MSCI ACWI IMI.
Capital on the move
Though the U.S. attracts a majority of climate-themed capital, the data suggests that billions of dollars in investment may be on the move. As the data highlights, transition opportunities run globally, with companies in every region competing for capital for technologies such as energy storage, clean transport and low-carbon power.
9.5
Percentage points by which the global share of assets in climate-themed funds invested in the U.S. fell in the first eight months of this year, outpacing a reallocation of investment away from the U.S. more broadly. The share of such assets invested in the Asia-Pacific region and Europe rose 6 and 6.3 points, respectively, over the same period. (MSCI Sustainability Institute)
Geographic exposure in climate-themed funds (seven years ended Aug. 31, 2025)
Source: MSCI ESG Research, data as of Aug. 31, 2025.
USD 590 billion
Assets under management in publicly traded climate-themed funds globally as of June 30, 2025, a nearly 20x increase since 2018 (MSCI Sustainability Institute)
USD 130 billion
Cumulative capital raised by private climate funds as of March 31, 2025 (MSCI Sustainability Institute)
50%
Projected share of global demand for carbon credits that could come from transactions under Article 6 of the Paris Agreement between 2025 and 2035. (Source: MSCI Carbon Markets)
33%
China’s share of global clean-energy investment, up from 25% a decade ago. (Source: International Energy Agency)
USD 9 trillion
The estimated value of the investment opportunity set for climate adaptation solutions by 2050, up from $2 trillion currently. (GIC)