Citigroup Sees The Writing on the Wall

Here's the introduction to an interesting document, "Climatic Consequences", created by Citigroup Research, a division of Citigroup Global Markets Inc. They emphasise the point that, regardless of dispute over the science, investors need to take climate issues VERY seriously. They also focus on the fact that there are going to be winners and losers in this game. Hate to say I told you so...

Investment Implications of a Changing Climate

➤ Investment Issue — For investors, the issue is not whether climate change is occurring. Today a variety of entities (governments, regulators, corporations, and individuals) are reacting to the perceived climate change threat, creating a number of near-term opportunities.

➤ Physical Implications — While physical implications may become apparent over the long term, there may already be some repercussions today — warmer winters and hotter summers in the U.S., droughts in Spain and Australia, and an increased frequency of intense hurricanes in the Gulf of Mexico.

➤ Regulatory Implications — There has already been a move to regulate greenhouse gases, ranging from international conventions sponsored by the United Nations, to legislation at the state level in the U.S. Importantly, companies with international operations are increasingly subject to various emissions regulations and standards in key markets, most notably today in the EU.

➤ Behavioral Implications — Even when not facing imminent regulation, a growing number of corporations are pursuing various climate strategies.

➤ Who Will Benefit? — We identify 74 companies (across 21 industries and based in 18 countries) that seem well positioned to benefit from these trends.

You can read the entire report here - enjoy:

http://www.pewclimate.org/docUploads/CIR%20%2D%2D%20Climatic%20consequences%20Jan%2E%202007%2Epdf