Investing in climate change adaptation and for a sustainable, low carbon future

Climate change is one of the most serious and threatening issues facing the world today, and many developing countries are especially vulnerable to its effects. Climate change will continue to present food and water security concerns, it will destabilize agricultural economies and communities, and will reverse decades of progress out of poverty for millions of people if unaddressed through both policy and private sector efforts.

Climate related threats affect emerging economies and individuals with low income most

While climate change is a global issue, the effects are not equally spread across the world. In fact, emerging economies are disproportionately more vulnerable to the impacts of climate change than the developed world.

Furthermore, the economic cost of climate change and weather-related events presents a huge financial burden, especially for the world’s poorest communities. Households with low incomes are the most vulnerable to these events as they have few tools to manage risk or savings to fall back on. Consequently, when faced with extreme weather fluctuations such as droughts, floods or storms, these households may be forced to resort to desperate coping strategies such as selling assets, reducing food consumption, or taking children out of school.

Financing the green transition

The investment community can play an important role in accelerating the transition to climate neutrality and meet the goals set by the Paris Agreement. As investors, we are financing projects in emerging and frontier markets that drive renewable energy, energy efficiency, green buildings and clean transportation to make an impact at scale in markets where energy demand is growing fastest.

We can create change in the world by the way we direct capital, putting it into areas that can generate positive change or withdrawing it from areas that deliver a negative impact.

Read about the Schroder ISF BlueOrchard Emerging Markets Climate Bond here.

Strengthening resilience to the evolving threats of climate change

Climate insurance reduces the vulnerabilities of individuals with low-income to climate threats by providing insurance as a risk management instrument. Crops, livestock and other sources of income and assets of micro-entrepreneurs and individuals with low-income can be insured. Individuals with low income are thus better equipped to absorb and recover from the financial burden of weather-related shocks.

Read about the InsuResilience Investment Fund and access our latest Impact Report here.