They also offer an assessment of the impact of climate change on the global economy.
Andy Howard, Head of Sustainable Research [at Schroders], led the work on the dashboard. Here, he explains why it was developed:
“Climate change will be a defining driver of the global economy, society and financial markets over coming years, decades and beyond. While the issue has moved up investment agendas, the change in strategies has not kept pace.
“The danger is that investors think the problem is being tackled, and that their exposure to climate change risks is reduced, when this is not necessarily the case.
“We developed the Climate Progress Dashboard as part of our efforts to manage the risks and identify the opportunities climate change presents. It provides an objective and transparent view of change to help investors base decisions on the outcomes that are likely, rather than those they would like to see.
“It’s worth noting the dashboard is a snapshot of where we stand, not a forecast of where we will end. We are in the early stages of changes that will play out over several decades. Estimates could change quickly with small changes in direction over coming years.
“As a result, the dashboard conclusions must be seen as measures of the paths we are currently on, rather than conclusions on where we will end up.”
While the assessment is, I believe, basically sound, I think the Standard and Poors projection on impacts which they quote (see below) is overly optimistic about impacts for the United States and northern Europe. I do not have quantitative evidence right now to back that up. However, to the degree to which U.S. businesses and residents depend upon extended supply chains for their sources, shipments, and intermediate products, as well as delivery, food, fuel, and so on suggests to be a much larger than nominal exposure to inclement weather and other disruptions which could arise in a +3℃ or +4℃ world. That is, and disaster planning backs this up, to the degree to which communities are locally self-sufficient is the degree to which they are resilient, in economics and living conditions.