Investors in global stock markets should pay more attention to the overlooked economic effects of extreme weather events, which have cost the US $1.1tn since 2005 and $500bn in the past five years. Investors should also be paying attention to the changing climate as it produces longer periods of extreme heat, he argued, pointing to recent studies that show that worker productivity cools as temperatures rise. State Street Global's Michael Arone said the destruction of wealth brought about by weather-related disasters, as well as the drop in productivity that occurs during hot weather, hamper economic growth. The report also found that climate change is already affecting food production around the world.
Investors in global stock markets should pay more attention to the overlooked economic effects of extreme weather events, which have cost the US $1.1tn since 2005 and $500bn in the past five years. State Street Global's Michael Arone said the destruction of wealth brought about by weather-related disasters, as well as the drop in productivity that occurs during hot weather, hamper economic growth. The report also found that climate change is already affecting food production around the world.