Man Group Podcast Explores Climate Adaptation Finance Blind Spots
Man Group's podcast features a discussion on the underdeveloped nature of adaptation finance and the challenges financial systems face in pricing physical climate risks.
Investment firm Man Group PLC has released a podcast episode delving into the shortcomings of climate adaptation finance and the broader financial system's struggle to address physical climate risks.
In the episode titled "Climate Adaptation Blind Spots," Jason Mitchell, CIO for Responsible Investment at Man Group, interviews Professor Nicola Ranger from the London School of Economics (LSE). The discussion highlights how financial markets currently fail to adequately price the realities of climate change impacts and integrate resilience as a core driver of long-term stability.
Professor Ranger characterizes adaptation finance as underdeveloped, noting that markets struggle to differentiate genuine resilience from nominal commitments. She argues that traditional investment horizons, typically three to five years, are mismatched with the long-term nature of climate exposure, as markets remain optimized for short-term efficiency.
The conversation also addresses the critical need to integrate natural capital and physical climate risks into financial decision-making. Ranger's work at LSE, including the Earth Capital Nexus initiative, aims to close these gaps by connecting finance, climate risks, and sustainable development goals.