How climate change is impacting retiree portfolios

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The perils of extreme weather affect retirees and some are adjusting their portfolios as a result. Here's how climate change is shifting their investments.

As retirees feel the effects of wildfires, deep freezes, hurricanes and flooding, some have altered their investing philosophies.

These so-called ESG investments, which stands for environmental, social and governance, may target companies focused on low carbon, climate awareness, green bonds, clean energy or other sustainability-focused options.For example, an investor with a moderate risk tolerance may shift a small portion of their stock allocation, typically 8% to 12%, to green economy-focused assets.

 

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