Two years of wildfires, storms and floods, killing scores of people, destroying thousands of homes and costing some $500 billion in global damage, have convinced big investors of the vulnerability of their assets — and a vast profit opportunity in the decades ahead.
What’s happening: Some of the biggest names on Wall Street are partnering with climate science groups to produce the first countrywide, property-level maps attempting to financially navigate the age of extreme weather-driven calamity.
These maps are so granular that they can pick out individual commercial buildings and electric power stations, and thus advise investors about the potential impact to their specific assets across the decades through the end of the century.
The sudden mini-frenzy among investors comes after years of ignoring warnings about a momentous risk to their assets:
BlackRock and Rhodium, a consulting firm, this month released a sophisticated program classifying the threat to investments in U.S. municipal bonds, electric utilities, and commercial real estate. Wellington Management, CalPERS and Woods Hole Research Center have produced a similar system for U.S., with the goal of now expanding into a global analysis.Since 2017, Michael Bloomberg and Mark Carney, governor of the Bank of England, have pushed the world’s leading