Institutional investors are trying to figure out how their portfolios will be affected if the temperature continues to rise, triggering what J.P. Morgan Chase calls a “climate black swan risk.” Investors, including Allianz Global Investors and Standard Life Plc, said they are taking this scenario more and more seriously. “This is something we really need to seriously think about,” said Hetal Patel, director of sustainable investment research at Standard Life, and the agency plans to begin studying risk management around climate tipping points next year. This included a simulation analysis of its £317 billion portfolio to assess the potential impact on various types of assets.

Institutional investors are trying to figure out how their portfolios will be affected if the temperature continues to rise, triggering what J.P. Morgan Chase calls a “climate black swan risk.” Investors, including Allianz Global Investors and Standard Life Plc, said they are taking this scenario more and more seriously. “This is something we really need to seriously think about,” said Hetal Patel, director of sustainable investment research at Standard Life, and the agency plans to begin studying risk management around climate tipping points next year. This included a simulation analysis of its £317 billion portfolio to assess the potential impact on various types of assets.