Climate change will affect investment

Climate change will impact substantially on investments, though the extent returns will be affected remains unclear, according to Social Ventures Australia (SVA) executive director Chris Cuffe.

"The pressure around the world to do something about climate change from the Government end is enormous and companies are forced to respond," Cuffe told last week's Portfolio Construction Forum.

Although climate change will have a major impact on investments, Cuffe warned that there are many uncertainties surrounding this topic, including a lack of global leadership to carry through initiatives.

"The problem is that we have no point of reference. We have no benevolent dictators to look after this," he said.

"A bunch of heavies get together every now and then and say nice words to each other and go back to their positions. That is a big worry."

He is also concerned that initial investments might not generate proper returns.

"The timing between spending the money and seeing the results, we know, is likely to be 50 - 60 years, and people will lose patience without doubt."