Asia is stepping up as a focal point for ESG regulation innovation, demonstrated by a market-calibrated approach that is increasingly aligned with international standards.
As climate change reshapes energy, food and water systems, physical risk is becoming ever more financially material. In this report, the Global Equity team discuss their approach to assessing physical risk – at a company and portfolio level – and outline where they see future opportunities.
“In the Iran crisis, oil is the key transmission mechanism through which tensions spill over into the global economy: a total disruption of the Strait of Hormuz is the decisive trigger that can turn an energy shock into a broader macroeconomic shock.”