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Asset pricing underestimates physical climate risks, warns DWS

The EUR 700 billion asset manager now incorporates physical climate risk in portfolio construction, so favoring firms with a more climate change-resilient business model. Globally, weather events have already hit share prices on several occasions and new data suggest markets have not yet priced in this risk.

In autumn 2017, Hurricane Maria ravaged Puerto Rico, one of the world's leading pharmaceutical manufactures. The hurricane devastated production facilities of companies such as Eli Lilly and AstraZeneca. | Photo: AP Photo/Gerald Herbert

The Caribbean island of Puerto Rico is host to manufacturing plants belonging to some of the world's largest pharmaceutical companies, including US giant Johnson & Johnson, Switzerland's Novartis and the UK and Swedish firm AstraZeneca.

Despite Puerto Rico's population of just 3.3 million, the US Food and Drug Administration (FDA) spends USD 40 billion (EUR 34 billion) annually on drugs produced on the island.

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Pensions sector responds to "unnuanced" carbon report

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