Capital markets still not fully pricing in climate risks, even as COP26 kicks off
Yet investors want more transparency, setting high green targets for their investments
Michelle Quah
Singapore
THE year's biggest climate summit, COP26, is in full swing; yet, the ability of capital markets to understand and process climate-related information continues to lag the growing demands that investors have of such data.
Research out last week (Oct 28) showed that capital markets are failing to price in climate risks, due to policy confusion and a lack of clarity on their financial impact, despite a significant growth in investments in this area; while separate reports, out at the same time, pointed to investors demanding more transparency and setting even more ambitious climate targets for their investments.
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