GLOBAL WARMING

Jake and ale

Identify and Explain the issue

Few investors factor in the impact that major global events will have on the value of their investments, even though, over the long term, they are forecast to have a huge effect on the way businesses succeed.

Climate change is one risk. Many investors may not even realise how much of their portfolio is directly exposed to energy companies that will be affected by global warming, and the regulation that is put in place as governments around the world try to mitigate it.

How does this affect different investment options

By tilting your portfolio from companies that produce carbon emissions towards those that try to reduce them, you may be able to protect against some of the effects of climate change regulation on your portfolio.

People will invest in energy efficient companies and avoid fossil fuel companies as they want to reduce the amount carbon and other harmful gasses entering the atmosphere

Who Benefits from this problem

Companies that are eco-friendly will benefit from this problem as they will promote ethical investing in their companies.

Ethical Investors will also benefit greatly as the ethical companies will become more popular

Alternate energy source companies

Companies mining arctic Resources

Who gets negatively affected by this

Agricultural industry - Warmer climates affect growth of crops and healthiness of cattle and other livestock. Also agricultural companies might be restricted to amount of cattle they produce as cattle is one of the largest creators of greenhouse gasses.

Tourism Industry - especially places that are heavily reliant on the surrounding environment such as ski resorts and tropical resorts/ reef tours will be significantly damaged economically.

Energy Industry - Companies promoting unsustainable energy sources will be effected as ethical investors will avoid investing in them

Food Industry - For example the fish industry is affected as warming of the ocean reduces plankton stocks, affects marine life and the planet's carbon cycle.