The looming issue of climate change has far-reaching implications, not least of which are relevant to the financial and investment world. Today we spend some time considering these impacts, with a focus on the question of whether climate risk is a priced investment. The short answer, conferred by the numerous academic explorations into the subject, is yes. This answer, however, still leaves investors with many options and contrasting possible approaches as to how to act. We get into some of the different avenues to explore when considering your best route, taking into account both ethical constraints and returns, as well as a long-term vision of sustainability. We also talk about why big companies with less of a focus on ethics may be tempted to go green for financial reasons, how investors might enact a moral stance by investing in fewer green companies, and many more surprising possibilities that arise out of the current findings. Rounding out all this serious discussion, we squeeze in an interesting book review from Hans Rosling, some Talking Sense questions, and of course, bad advice of the week, all of which you are not going to want to miss.
Timestamps:
0:00 - 9:11 Intro
9:12 - 16:19 Cameron’s recommendations
16:20 - 21:19 Recent news
21:20- 26:17 Physical / Transitional Climate Change Risk
26:18 - 35:09 Theory on Asset Prices, Discount Rates, Taste of Investors
35:10 - 43:33 The relationship between asset prices and climate risk
43:34 - 54:36 Climate Change’s Impact in a Portfolio
54:37 - 1:00:32 Talking Cents
1:00:33 - End Bad Advice of the Week
Books From Today’s Episode:
How to Change — [ Ссылка ]
Factfulness — [ Ссылка ]
The Coffeehouse Investor's Ground Rules - [ Ссылка ]
Links From Today’s Episode:
Rational Reminder on iTunes — [ Ссылка ].
Rational Reminder Website — [ Ссылка ]
Follow us on Twitter - [ Ссылка ]
Follow us on Instagram - @rationalreminder
Benjamin on Twitter — [ Ссылка ]
Cameron on Twitter — [ Ссылка ]
'Wealthfront in its sixth pivot as a firm, reduces its robo-advisors role and puts decision-making power where it belongs with retail investors' — [ Ссылка ]
Burton Malkiel — [ Ссылка ]
'Sustainable investing in equilibrium' — [ Ссылка ]
'Market Expectations About Climate Change' — [ Ссылка ]
'An Inconvenient Cost to the Effects of Climate Change On Municipal Bonds' — [ Ссылка ]
'Disaster on the Horizon: The Price Effect of Sea Level Rise' — [ Ссылка ]
'Science and the Stock Market - Investors’ Recognition of Unburnable Carbon' — [ Ссылка ]
'Environmental Externalities and Cost of Capital' — [ Ссылка ]
'Carbon Tail Risk' — [ Ссылка ]
'Climate Regulatory Risks and Corporate Bonds' — [ Ссылка ]
'Greenhouse Gas Emissions and Expected Returns' — [ Ссылка ]
'Can't Decide Between Gold or Bitcoin. Why Not Both?' — [ Ссылка ]
Paul Tudor Jones — [ Ссылка ]
The Economic Limits of Bitcoin and the Blockchain - [ Ссылка ]
University of Chicago survey would gold be a better system, or gold-backed currency be a better system? - [ Ссылка ]
Would a Gold Standard Brighten Economic Outcomes? [ Ссылка ]
