Debt Markets Shift Gears on Climate Risk Pricing

JPMorgan Chase & Co.'s climate advisory team sees a significant shift in how debt markets view climate-related risks, according to Sarah Kapnick, global head of climate advisory. In an interview, she noted that just five years ago, debt markets were not taking climate risk seriously enough. However, today they are treating these risks with more gravity.

Kapnick highlighted that there has been a notable shift in understanding how to price in climate-related physical risks from the fixed-income side. This change is attributed to increased awareness and better tools for assessing these risks, she explained.