BlackRock’s analysis shows that the risks posed by climate change are being underestimated by investors, the Financial Times reports. The report found that investors in the €3.8 trillion municipal bond market could suffer losses as the most vulnerable cities face losses of more than €11 trillion in local gross domestic product.
The rise in environmental issues, such as the increased incidence of hurricanes and wildfires in the last 12 months, has highlighted the effects of global warming. However, investors have been slow to recognize and assess how climate risks could affect their investments.
