Snapshot

Video Webcast

How will climate change affect investment decisions?


Simon Webber

Simon Webber

Lead Portfolio Manager

See all articles

Climate change is important to investors because we are in a period of very significant change.

The goals set out in the Paris agreement to tackle climate change require a complete decarbonisation of the global economy.

That means all kinds of industries will need new production technologies and new ways of manufacturing.

And that will require a whole new set of products, services and technologies than we have used in the past.

So we think it will be very important for investors to align with those new products and services and to avoid the industries and the companies that are not well positioned for that change.

Why is this important now?

Well, some of the most important climate change technologies, like renewable energy or electric vehicles, have come of age.

The cost of those technologies have come down to the point that, rather than requiring a lot of subsidy or taxpayer funding, they are competitive.

They are the cheapest forms of power generation. In the case of electric vehicles, the cheapest form of mobility of driving a vehicle.

That means we can begin to meet our objectives under the climate change with competitive technologies. And that means the inflection points, the growth of those technologies, can be incredibly strong.

 

ESG-button-en-1.png      ESG-button-en-2.png

 

Important Information
Any security(s) mentioned above is for illustrative purpose only, not a recommendation to invest or divest.
This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The views and opinions contained herein are those of the author(s), and do not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The material is not intended to provide, and should not be relied on for investment advice or recommendation. Opinions stated are matters of judgment, which may change. Information herein is believed to be reliable, but Schroder Investment Management (Hong Kong) Limited does not warrant its completeness or accuracy.
Investment involves risks. Past performance and any forecasts are not necessarily a guide to future or likely performance. You should remember that the value of investments can go down as well as up and is not guaranteed. Exchange rate changes may cause the value of the overseas investments to rise or fall. For risks associated with investment in securities in emerging and less developed markets, please refer to the relevant offering document.
The information contained in this document is provided for information purpose only and does not constitute any solicitation and offering of investment products. Potential investors should be aware that such investments involve market risk and should be regarded as long-term investments.
Derivatives carry a high degree of risk and should only be considered by sophisticated investors.
This material, including the website, has not been reviewed by the SFC. Issued by Schroder Investment Management (Hong Kong) Limited.