Whether you believe in climate change or not, the world is beginning to face up to the fact that we are doing some harm.

Wealth Management and Private Banking

20 November 2019

Wealth Management and Private BankingWealth Management and Private Banking

Invesco are about to publish a research article that considers ‘what would you put into a portfolio now for your grandchildren to benefit from?’

  • Looking at temperature rise, we are benchmarking this on data from 1850-1900. Currently a 0.8% increase since then.
  • The problem is it takes 100 years for there to be an impact of what we’ve pumped into the atmosphere. By 2050 = 1.1%, by 2100 = 2.6%, by 2150 = 3.5%. This is what is looking likely.
  • Plenty of future temperature is already baked in. Weather related disasters are already up X3 since 1960.
  • Sea level has risen 9” since early 1900s.
  • Marine species have moved north and are going deeper. 
  • Look at the wildfires recently – these are up x10 since 1980.
  • Evidence in our own day to day lives too, for example cutting the grass in November would previously have been unheard of.
  • The average diet in the US is 2.5 tonnes of CO2 per year. A Vegan diet in the US requires 1.3 tonnes.
  • Do people understand their carbon footprints?
  • Do we think that shaming will start to come into things?
  • Cobalt batteries for example are a huge contributor to climate change and we cannot avoid the unintended consequences.
  • We expect a reduction in population growth which will in turn reduce global GDP to 2.4%.
  • A 4 degree temperature increase will result in 0.5m sea level rise.
  • This all has huge implications for migration flows.


Expert: Paul Jackson, Global Head Asset Allocation Research, Invesco

Facilitator: Giles Patterson, Director, Scorpio Partnership