If we don’t address climate change and keep anthropogenic warming under the 2°C threshold set out by the Paris Climate Accord, then we will face the wrath of nature through rapidly rising sea levels, increased drought and wildfires, and other trends that will make life on earth more difficult — this is the physical risk of climate change. If we do address climate change and do keep anthropogenic warming under the 2°C threshold set out by the Paris Climate Accord, then we will face the wrath of economics through rising regulatory activities, the loss of value in substantial assets, and other trends that will make business on earth more difficult — this is the transitional risk of climate change efforts. Until recently, the concept of ‘stranded assets’ has essentially been a hypothetical and abstract idea for climate-focused economists to apply to future forecast models. It describes assets that suffer from unanticipated or premature write-downs, devaluations, […]