Climate Biggest Risk For Investors

Climate is the biggest risk investors face in the long run and it’s one of the most complex, says Priti Shokeen, vice-president and director and head of the ESG research and engagement team at TD Asset Management (TDAM). She told its ‘Investment Opportunity Driven by Climate Change’ session at its ‘2022 Sharing of Knowledge Learning Series (SOKLS)’ that never before has there been an issue that drives decision making at every level of the economy. “Investors need to understand this is not a risk on the horizon, but a systemic issue that is happening right in front of us right now,” she said. However, the transition to a net zero economy will come with unintended consequences, not only for workers and communities, but for countries like Canada that rely heavily on fossil fuel reserves and natural resources. “That is why we think engagement is a better way than excluding certain sectors” to drive change. Taking an exclusionary approach is “just passing the buck to someone else who may not be as responsible or not care about climate change as much.”