The Converting Global Risks into Sustainable Returns initiative focuses on the need for investment and monitoring solutions that asset owners can leverage to address the world’s annual transformational investment gap of $6.27 trillion. The global systemic risks of top priority include climate change, water security, geopolitical stability, technological evolution, demographic shifts and global low/negative real long-term interest rates.
By convening a community of sovereign wealth funds, pension plans, endowments, foundations, asset managers, banks, academics, and regulators, this initiative will aim to address the following topics:
· The state of the asset owner community’s incorporation of global systemic risks into the construction of reference policy portfolios
· Allocating capital to strategies that address the global systemic risks and the solutions’ roles in investment programs
· Progress related to the incorporation of global systemic risks into investment selection and risk management processes