The New Economics of Climate Change

Economists are holding up a quantitative mirror to the fundamentally existential problem of climate change.

In a time of accelerating climate change, an increasingly volatile reality will eventually come up against the limits of modern portfolio theory. The definition of fiduciary duty is therefore starting to expand, to include not only traditional and largely passive investment policy but also active stewardship of global average temperature. This is an extraordinary paradigm shift in institutional investing.

Source: The New Yorker