Investment bankers learning to hug trees

The Financial Times proved conclusively today that the issue of climate change has gone mainstream: investment bankers are now concerned about it. Lehman Brothers and UBS have both published reports on the issue, indicating that business has to stand up and take notice. Writes the FT: [T]he progress of climate change may be slow and hard to quantify but the impact ...

The Financial Times proved conclusively today that the issue of climate change has gone mainstream: investment bankers are now concerned about it. Lehman Brothers and UBS have both published reports on the issue, indicating that business has to stand up and take notice. Writes the FT:

The Financial Times proved conclusively today that the issue of climate change has gone mainstream: investment bankers are now concerned about it. Lehman Brothers and UBS have both published reports on the issue, indicating that business has to stand up and take notice. Writes the FT:

[T]he progress of climate change may be slow and hard to quantify but the impact on business can be sharp and sudden. Already, some houses on low-lying land have become uninsurable and unsellable owing to the increased risk of flooding.

The findings from the reports also suggest that stringent regulations are likely to cause the biggest short-term impact on business in areas such as the auto and energy sectors. On the up-side, though, green technology provides ample investment opportunities:

Wind and solar power are an obvious choice but nuclear energy and clean coal are also likely beneficiaries. More mainstream industrial companies also stand to benefit by making more energy-efficient products.

Green-leaning investors should bear that in mind, particularly with alternative energy stocks enjoying racy valuations.

Politically, too, it seems we have finally reached a point where talking about climate change is no longer considered the “loser” issue that it was just a few short years ago. What’s caused this shift? For some answers and new insights, check out FP‘s Seven Questions this week, featuring Christine Todd Whitman, former head of the Environmental Protection Agency in the United States.

Prerna Mankad is a researcher at Foreign Policy.

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