Deutsche Bank Says ‘Fat Tail’ ESG Risks Are Falling Under Radar
Investors face a growing risk that climate change will result in a sudden loss of value, with existing portfolio models often falling short, according to an analysis by <-bsp-person state="{"_id":"0000018b-6d94-db85-afab-6f94c23b0000","_type":"00000160-6f41-dae1-adf0-6ff519590003"}">Markus Müller-bsp-person>, chief investment officer for ESG at Deutsche Bank AG.
“The temptation is to assume that the effects” of global heating “will accumulate only gradually,” he said in a client note. “However, this isn’t guaranteed.”
The <-bsp-bb-link state="{"bbHref":"bbg://securities/DBK%20GY%20Equity/FA%20ESG","_id":"0000018b-6d94-db85-afab-6f94c23d0000","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">Deutsche Bank-bsp-bb-link> executive says investors need to prepare themselves for the unanticipated consequences of “fat-tail” risks associated with climate change. Though such events — per definition — are deemed unlikely, the fallout …
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