Fund management is all about minimising the risk and increasing the growth of funds. But a recent survey showcased that Canadian fund managers not tackling climate change risks, which is a risk in itself.
Fund management is not only about picking the right place to invest but also to assess all types of risks. Climate change is a real threat to the economy in Canada as shown by history. Most of the developed nations have pinpointed this risk as very real and the fund management companies in these countries have included it as a major risk factor. The survey has found that the Canadian investment management companies are denying the threat due to climate change.
The reality is that Canadian investment companies are exposed to risks more than the rest of the world. The recent Fort McCurry fire proved just that. In a matter of weeks, a town of 80,000 people had to be evacuated and the oil refining unit of Shell had to be closed. The cause was increasing temperature and climate change that ignited the wildfire. This is going to have a direct impact on the economy as proven by history (remember the slave lake wildfire’s impact on the economy of Canada in 2011). The reliability of Canada on conventional sources of energy like coal and fossil fuels is going to cost Canada dear in the long run, and when the economy will get affected so will be the investments.
Knowing this is not enough. The people need to act and make their investment companies realise that this is a real risk which can affect all.