ESG ‘Bubble’ Is a Risk in Crowded Climate Bet, Schroders CIO Says

The chief investment officer of Schroders Plc says there’s now so much money chasing a limited universe of climate assets that clients need to be aware of the potential pricing risks they face.

“Clients want to decarbonize, but on the other side there are not many opportunities,” Johanna Kyrklund, group CIO of the $1 trillion London-based fund manager, said in an interview. “There are not as many places to invest, and this can create a bubble.”