Retail investors not pricing in climate change sufficiently: asset managers

Experts say there is a lack of quality information in markets, and a mismatch between the data available and what investors are looking for

Uma Devi

Published Mon, Mar 22, 2021 · 05:50 AM

Climate change

Singapore

WHEN it comes to stock market investments, retail investors are quick to price in the likes of inflation and foreign currency risks into their investments. But asset managers say investors are not adequately accounting for adverse risks from climate change.

Climate change is at best just 20 per cent priced in to the valuations of the "wide basket of investment opportunities globally", said Mercer's head of responsible investments Alexis Cheang.

Accounting for climate change risks is also uneven,…