COP26 was an important event in raising further awareness about climate change. However, there were mixed messages coming out of Glasgow. Most importantly, despite pledges made by individual countries on their own emission reduction targets and on international agreements on restricting the production of methane and use of coal, scientific studies suggest the world is still on track to exceed the 1.5 degrees Celsius increase in temperature relative to pre-industrial times, by 2050.

For investors that means increasing changes of risks related to climate change materialising in the years ahe...