The University of Cambridge has published a report arguing that environmental and social factors are increasingly interacting in ways that create compounding, financially material impacts across the global economy.
These interlinkages, the report argue, lead to risks that are not confined to individual assets or sectors – but propagate across value chains, geographies and socio-economic systems, leading to challenges in diversification, increased volatility and amplified exposure in investment portfolios. Yet prevailing risk assessment frameworks often treat environmental and social factors in isolation, underestimating their combined, cumulative financial impacts, it said.
Companies:University of Cambridge
