Man Group Proposes Dual Approach for Climate Investing: Mitigation and Adaptation
Asset management firm Man Group PLC has released a new paper outlining a dual approach to climate investing. The strategy focuses on both halting global warming (mitigation) and managing its already apparent effects (adaptation).
Asset management firm Man Group PLC has published a new report advocating for a dual strategy in climate investing. The paper emphasizes the critical role asset owners and investors must play in combating climate change and avoiding its most severe consequences.
Man Group proposes that climate finance should target two key areas: mitigation, aimed at reducing greenhouse gas emissions and halting global temperature rise to well below 1.5 or 2 degrees Celsius above pre-industrial levels, and adaptation, focused on managing and building resilience to the impacts of climate change already occurring, such as extreme weather events and sea-level rise.
The report highlights that global climate finance needs are substantial, estimated at USD 7.3 trillion annually until 2050 to stay on track with the Paris Agreement's 1.5°C goal. The economic losses from failing to mitigate climate change are projected to be significantly higher than the required investments.
Man Group identifies alpha-generating investment opportunities within both mitigation and adaptation strategies. The firm stresses that while mitigation is paramount for the long term, adaptation is crucial in the short term to address the financial and social impacts of climate extremes and realized warming.
The company released its findings on May 15, 2025. The report is intended for institutional and professional investors and is not meant for retail distribution.