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By Christophe DONAY, Head of Asset Allocation and Macroeconomic Research, Pictet Wealth Management
While the true physical impact of climate change may only reveal itself over several decades, major transition efforts by governments, corporations, investors and citizens alike are already gaining momentum, with noticeable consequences for macroeconomic balances and financial markets.
In financial markets, a strong self-reinforcing mechanism is at play that should not be underestimated. As soon as a sufficiently large share of the investment community starts acting according to strict environmental criteria, these become de facto market-moving drivers worth monitoring.
There is significant evidence suggesting that we have...
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