BOE's Carney Sees Risks to Climate Change Management

The transcript discusses the impact of climate change on risk management, particularly in the context of monetary policy and insurance. It highlights the concept of the 'tragedy of the horizon' and how short-term financial horizons often overlook climate risks. The text explains how the insurance industry adapts to climate change through pricing and coverage adjustments. It also addresses future risks, such as changes in government policy and technology, and how markets anticipate these changes. The importance of having information for capital allocation and qualitative judgments about management and risk management is emphasized.

In what ways do markets anticipate changes related to climate policy and technology?

What information is crucial for making judgments about capital allocation in the context of climate change?