There really shouldn’t be any question that climate changes. The real issues are; what is the rate and direction of change, what is causing it, what can or should be done about it and what makes economic sense?
These are important questions. Unfortunately, they would be difficult to answer under the best of circumstances, but with the current degree of politicization and the emergence of a growing cadre of individuals and organizations seeking to profit from climate uncertainty and concerns, rational discourse and discovery is proving to be difficult to find.
Investors have two primary concerns. First, they have to live on this earth and second, they should be interested in seeking out the most cost effective methods of addressing a problem that is proving difficult to quantify.
There seems to be two rational, potential responses to climate change, recognizing and mitigating the causative factors, to the extent practical, and learning to live with the changes that do not lend themselves to amelioration.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA®