For the government, the tipping point to align their policies with the science of climate change will not be brought about by student demonstrations.
This will come from a shift in investor sentiment.
Data show that even if investors do not list environmental disasters as a major concern and do not even doubt it, there are still some who are right to insist and successfully bet on scientists.
In general, conservatives remain skeptical about climate change, especially in the United States. S.
Many investors are conservative.
Just as a financial professional, in a recently published study on institutional investors' attitudes towards climate change, told the University of Uppsala researcher Brett kristóvles, according to interviews with executives managing over $1 billion of investment companies, these financiers are not interested in selling fossil fuel assets and do not see effective ways to incorporate climate change into their models, if they do think it's a risk, then they think it's just one of the many risks.
This led christoph's people to conclude that environmental lobbyists and progressive politicians will not shake the investment crowd until they see clear financial returns to adjust climate change.
Judging from the current situation, sustainability plays a secondary role in investment decision-making, which is clearly demonstrated by the 2018 study by asset management company Schroders Plc.
The "Show Me the Money" attitude is natural, but another recent paper highlights at least one part of the financial community that takes climate science seriously.
Wolfram Schlenk and Charles Taylor from Columbia UniversityS.
Foreign exchange market-
As of 2018, the traded weather derivatives price was £ 2002, comparing the way investors price their temperature expectations for a specific month with climate scientists temperature forecasts based on the impact of human activity.
They found that there was a complete agreement between traders and white big coats.
Schlenker and Taylor wrote: This may be an overly optimistic conclusion.
The weather etf and option markets are small in size and have poor liquidity.
Billions of dollars of such derivatives are traded on the counter: given that about 30% of U. S. derivatives are used in reinsuranceS.
It is estimated that the economy is directly affected by the weather.
But weather derivatives are still a niche for major investors.
Traders who focus on these tools must know more about the real situation of the Earth's climate than other financial professionals.
Climate skeptics have no reason to go out of their way to reverse bets on contracts with little liquidity.
However, investors should pay more attention to the pricing of weather derivatives.
The market has been around for 20 years, long enough to make it clear that there is no return on the bet on a consensus climate model.
This should have a broader meaning.
If these predictions are made in the derivatives market, stripping away from fossil fuel stocks and looking for more sustainable opportunities should be seen as a reasonable strategy.
Stocks exposed to climate risk may be more wrong.
More expensive than usually thought.
Contact the author of this story: Leonid Bershidsky of lbershidsky @ bloomberg.
NetTo contacted the editor in charge of the story: James Boxell of jboxell @ bloomberg.