The Importance of Climate Risks for Institutional Investors

Philipp Krueger, Zacharias Sautner, Laura Starks

2019 | Academic | Climate, Divestment, Investor Behavior

We survey institutional investors to gain a better understanding of whether, why, and how they consider climate risks in their investment decisions. We find that the survey respondents generally think that climate risks have important financial implications for their portfolio firms. Further, the majority believes that climate risks, especially those related to regulation, have already started to materialize. Most of the respondents have taken at least first steps toward managing climate risks. Divestment is the least frequently used approach overall...