Even as Europe's heatwave fades, asset managers are reassessing how climate
change will affect portfolios. Pictet Asset Management reports a surge in client
queries on risks and opportunities from extreme heat. Nuveen says the impact of
European drought will soon begin to show up in corporate credit spreads.
Rathbones fund manager David Harrison prefers companies exposed to climate
solutions and grid infrastructure. BloombergNEF finds references to extreme heat
in recent corporate filings at a record high, and mentions of the Rhine and
water levels on earnings calls at the highest levels since 2018.
