It’s not a matter of if, but when, markets price in climateIt’snotamatterofif,butwhen,marketspriceinclimate

Markets are inconsistent in how they factor climate change into their pricing models. Increasing awareness of the vulnerabilities caused by climate change, coupled with growing government regulation and data sophistication, mean that we are on the cusp of a major repricing to capture climate externalities. 

PGIM chief operating officer, Taimur Hyat, joined Ian King on Sky News to discuss some of the markets currently impacted, including sovereign debt, municipal bonds and energy sector equities. Hyat suggests that investors shouldn’t fall into the trap of contrasting traditional “brown villains” with “green heroes”, but should be seeking out the “olive” companies that are leading the transition towards a renewable future.