Climate Risk and the Capital Markets

Climate change creates risks and opportunities for the private sector in emerging markets and may impact financial institutions’ performance and the companies they invest in. During the last 10,000 years, our climate has been very stable, and now is becoming unstable. Financial models that we are using models that are missing variables as they were designed without considering the non-linear changes. Spencer Glendon, Founder of Probable Futures, helps us better understand the fundamental risk that capital markets have with the inability to consider climate changes.