News | 08.11.21
What the UN's Climate Change Report Means for Advisors
The UN's dire report on climate change carries ramifications for how financial advisors make recommendations for their clients, with Align Impact Chief Executive Jennifer Kenning saying advisors should stay informed in order to flag risk to clients. Examples include showing a client their portfolio's level of exposure to climate risk, based on carbon intensity, and offering them alternatives. This does not mean divesting all assets in energy companies, as it is more valuable to consider the role that companies will play in a low-carbon economy in the near future. Morningstar's John Hale says climate change-related risks extend beyond energy companies, while shareholders "have made it pretty clear that they're concerned about climate risk, that ESG, in general, is appealing to them."
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