According to a new report, approximately half of institutional investors here in the United Kingdom are at risk from significant climate-related threats, which could potentially affect the value of their investment portfolios.
UK consumers concerned about climate-related risks who are seeking investment advice in Shropshire, Cheshire and other counties can look to wealth management firms for guidance. Wealth managers take a holistic approach to investing and create customised portfolios for clients that reflect their individual tolerance to risk.
The recent analysis examined the exposure of the UK’s institutional investors towards climate risks. The potential threats assessed by the report included those linked to credit, equity, data availability, asset transaction and transparency, along with how climate change will likely impact each different area.
A total of 321 institutional asset owners based here in the UK that possessed total assets of more than £280 billion were included in the study. Based on its findings, the report has warned that around 50 percent of the investors were now facing major climate-related risks, with only 10 percent of asset owners currently facing what could be considered a low level of climate risk.
Additionally, the research uncovered that about 82 percent of the UK’s institutional investors now hold more wealth in gilts and corporate bonds – around 54 percent – than they hold in equities. For this reason, the report is urging corporates and investors in the UK to strengthen their relations and disclosures related to intended and current business pledges regarding net-zero goals.