Survey: Nearly half of global investors and risk managers believe financial asset prices do not reflect climate risks

The results of the "Climate Risk Survey" released by the MSCI Center for Sustainable Development on the 4th show that nearly half of the global investors and risk managers surveyed believe that financial asset prices do not reflect climate risks.

The survey covered more than 350 senior investors and risk managers from banks, insurance companies and investment institutions around the world. Among them, more than a quarter of the respondents came from the Asia-Pacific region.

Survey results show that investors are divided in their views on carbon emission trends. About half of respondents expect global carbon emissions to peak in the next decade, while the other half expect emissions to continue to rise. Among them, more respondents in the Asia-Pacific region believe that global carbon emissions are "about to peak." The survey also found that energy transition is a particularly important discussion topic in the communication process between Asian companies and their investors.

Nearly half of respondents (48%) said that financial asset prices do not reflect climate risks. In contrast, 41% of respondents said financial assets partially reflect climate risks, and 7% believed that asset prices fully reflect climate risks.

Some investors and risk managers believe that climate change has an impact on investment decisions. About one-third (34%) of respondents said climate change has had a significant impact on asset allocation in their portfolios, but more (42%) said the impact was insignificant. Only 5% of respondents said climate change has had a significant impact on their asset allocation, while 17% said climate change has not had any impact on asset allocation so far.

In addition, the survey said that more than half of respondents (57%) believe that climate-related physical risks are causing economic losses. Another 36% of respondents said climate change will have a significant impact on the economy in the future. Among them, respondents in Europe and the Asia-Pacific region said they were more likely to be affected by extreme weather, and 43%-46% believed that extreme weather events had the possibility of causing economic collapse. Areas that are particularly vulnerable to thermal stress, such as North America, the Middle East and parts of the Asia-Pacific region, have higher levels of concern about heat waves. (End)