Investment Metrics for Climate Change, Part 1: It Will Cost Us Dearly
To clean up our house, we will need to change some of our 20th-century habits for good. That includes our ways to evaluate investments and measure their performance.
Climate change is visible everywhere you look.
Glaciers are melting at an unprecedented rate, as those pictures from the 1930s and the 2020s show.
Farmers all over the world need to cope with more frequent and more severe drought, even in moderate climates such as Switzerland.
Even the U.S. Navy is contemplating abandoning some of its major bases, as sea levels rise faster than ever.
On top, economic troubles start appearing everywhere you look.
Capital is becoming scarcer. Not just for fancy startups, but for business in general. Part of the reason is that investment in business continuity is on the rise. Part is because governments dole out huge stimulus packages in the wake of COVID-19. And part is because markets tend to become smaller due to the rising geopolitical tensions between the West, Russia, and China.
And don’t forget the costs of restoring our defense capabilities, modernizing our social…
