Issue Brief: Physical Climate Risk in EM

This Brief is the first in our Carbon Transition Initiative, a series of 12 webinars and publications on the impact of climate change and carbon transition on emerging markets. 

We address physical climate change risk from the perspective of emerging markets investors. Climate change affects many countries. However emerging markets are both more vulnerable to climate-related hazards and less prepared to cope with their effects.

The risks associated with climate change do not appear to be reflected in valuations of most financial markets. 

Climate risk indices suggest that Nigeria, Pakistan, India and Philippines are particularly vulnerable to physical climate risk, among the major EM and frontier markets. Poland, Chile, Brazil and Russia appear relatively less vulnerable.

This brief is the first in our Carbon Transition Initiative, a series of 12 webinars on the impact of climate change and carbon transition on emerging markets. It accompanies our webinar on the topic in January 2021.

Access the full Issue Brief here.