Right now, when they think about climate change, institutional investors—the pension funds—focus almost exclusively on transition risk, the cost on carbon and what it means to the companies they invest in. That's fine to do. What they've virtually completely and totally ignored are the impacts of flood, fire, hail, wind and snow load, the physical climate risk impacting the operations of the companies they invest in. Now it's being brought to their attention that they have to consider mitigation and adaptation simultaneously.
