With high-impact, low-probability events increasing in frequency and impact, this article shows what investors can learn from BP's Gulf of Mexico spill. It identifies six causative drivers, one of which is shareholder value maximization; shows why these events are “preventable surprises”;...

With high-impact, low-probability events increasing in frequency and impact, this article shows what investors can learn from BP's Gulf of Mexico spill. It identifies six causative drivers, one of which is shareholder value maximization; shows why these events are “preventable surprises”;...

Climate change is happening fast and may have a large impact on investment values. The growing debate about fossil fuel divestment is a signal that investors are slowly waking up to this threat, but long-term investors must do much more if they are to avoid material damage to the value of their...

This paper seeks to offer a perspective from two practitioners on how the potential for retirement fund collaboration to improve long-term market returns could be realised. After looking at the Universal Owner hypothesis and long-term market returns, and their relevance to pension funds, the...

If it reaches 4° or more, global warming may cause severe economic damage with the consequence that a significant portion of the value of a diversified equity investment portfolio will be placed at risk. In the accompanying Part 1 we analysed this risk. We estimated that in a plausible worst...

If it reaches 4° or more, global warming may cause severe economic damage with the consequence that a significant portion of the value of a diversified equity investment portfolio will be placed at risk. In this Part 1 we analyse this risk. We estimate that in a plausible worst case for climate...