Deutsche Bank maps climate change risks for investments

Deutsche Bank has developed a tool to forecast where its investments across the globe may be impacted by natural disasters brought on by climate change.

"Factors such as sea level rise, droughts, flooding and
cyclones pose an immediate and measurable threat to
 investment portfolios," Deutsche Bank Asset Management said.

Although tools have existed in the insurance industry to model the impact of climate change, this is the first time this sort of data has been systematically applied to investments.

Deutsche Asset Management created the map with climate change intelligence firm Four Twenty Seven, covering more than one million individual locations in order to see how changes to climate will threaten its investment portfolios. The group currently has about €711 billion ($1.06 trillion) under management.

Economic modelling estimates that if carbon emissions aren't reduced throughout this century, per capita GDP will decrease by 23 percent from what it otherwise would be.

Read Cole Latimer’s story in today’s Melbourne Age - “Deutsche Bank maps climate change risks for investments.”