Climate change creates a wide range of adaptation, physical and transition risks. These risks can have material impacts on companies, investors, financial institutions and entire economies. And they will only increase until we stem greenhouse gas (GHG) emissions and then begin to reduce GHG levels in the atmosphere.

In this paper, we review the state of knowledge about the financial impacts of climate change for investors. This includes research examining the estimated economic costs of climate change, the materiality of those economic costs to investors, and the potential impact of climate risks on asset values.

Executive summary

  • A growing body of research demonstrates the financial materiality of physical, transition and adaptation risks to companies, issuers and their investors.
  • Investment to reduce or mitigate GHG emissions will lower the costs of physical risks arising from climate change, but trillions of dollars must also be spent to adapt the global economy to the new climate regime.
  • Though many experts believe markets are widely underestimating climate-related risks, studies show that lower-emitting companies and those with transition plans have delivered financial outperformance.

Nothing presented herein is intended to constitute investment advice and no investment decision should be made solely based on this information.  Nothing presented should be construed as a recommendation to purchase or sell a particular type of security or follow any investment technique or strategy.  Information presented herein reflects Impax Asset Management’s views at a particular time.  Such views are subject to change at any point and Impax Asset Management shall not be obligated to provide any notice.  Any forward-looking statements or forecasts are based on assumptions and actual results are expected to vary.  While Impax Asset Management has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability or completeness of third-party information presented herein.  No guarantee of investment performance is being provided and no inference to the contrary should be made.

Julie Gorte, Ph.D.

Senior Vice President for Sustainable Investing

Julie is a leading figure in Impax Asset Management’s sustainable investing work, coordinating systemic engagement and the financial implications of integrating sustainability into investment decision-making. Julie researches the connections between sustainability and economic performance. She also tracks and develops insights into the impact of public policy on investment and communicates with public policymakers to help make public policy more favourable to sustainability and sustainable investing. Julie is a member of our Gender Analytics team and the Impax Sustainability Centre.

Prior to joining the firm, Julie headed up the social investment strategy at Calvert. She has held senior roles at the Congressional Office of Technology Assessment, The Wilderness Society, and the Environmental Protection Agency.

Julie serves on the boards of the Endangered Species Coalition, E4theFuture, Clean Production Action, the Forum for Sustainable and Responsible Investment (US SIF) and is the board chair of the Sustainable Investments Institute. She holds a Ph.D. and a master’s degree in resource economics from Michigan State University and has a bachelor’s degree in forest management from Northern Arizona University.

Recent Insights

Investing to address biodiversity loss

The scale of exposure to nature-related risks means investors must urgently understand the drivers of biodiversity loss and invest in ways to reduce them

1 March 2024
Climate change: the impact for investors

Reviewing the research that demonstrates the financial materiality of physical, transition and adaptation risks to companies, issuers and their investors

15 September 2023

Charlie Donovan

Senior Economic Advisor

Charlie Donovan is Senior Economic Advisor at Impax Asset Management and Professor of Practice in the Department of Finance and Business Economics at the University of Washington. Charlie’s role at Impax deepens the firm’s expertise in understanding the opportunities arising from a global energy transition. He contributes to Impax’s thought leadership initiatives and provides insights on North American policy developments to Impax’s clients and investment teams. He is a member of the Impax Sustainability Centre.

Before joining lmpax in 2022, Charlie was previously Professor of Practice at Imperial College London and Founding Executive Director of lmperial’s Centre for Climate Finance and Investment. In his corporate career, Charlie was Head of Structuring and Valuation for Global Power at BP plc and part of the team that launched BP Alternative Energy in 2005 with an $8 billion funding commitment. He began his career as an Energy Policy Analyst at the US Environmental Protection Agency during the Clinton Administration.

Charlie is co-author and editor of Renewable Energy Finance: Powering the Future, now in its second edition. He holds a BA from the University of Washington, an MBA from Vanderbilt University, and gained a DBA (Doctor of Business Administration) in finance from IE Business School.

Recent Insights

The green arc of steel’s transition

Emerging technologies are poised to reduce the steel industry’s environmental impact, creating compelling investment opportunities in the sector

2 May 2024
Scroll to top
To get started, please select your location and investor type below.

If you are invested in Impax Funds – regardless of share class (Investor, Institutional, or Class A) or account type (individual, business or other entity) please select Impax Funds Investor as your Investor Type.

Access Impax Asset Management Limited’s Form CRS here.

Important Information

I confirm that I am an [investor_type] based in [investor_country] and that I have read and understood the important information, privacy policy and terms and conditions which govern the use of this website.

Risk Warning

Capital at risk. The value of investments may go up or down and is not guaranteed.