Fidelity Calls Out Limits of Extreme-Weather Adaptation Bets

As extreme weather becomes more frequent, investors are examining how much money can realistically be made from climate adaptation.

Jenn-Hui Tan, chief sustainability officer at Fidelity International, which oversees about $1.1 trillion, said the investment case for adapting to climate change is far less straightforward than for reducing emissions. Mitigation has produced clear growth opportunities such as renewable energy and electric vehicles, while adaptation — focused on protecting assets from damage caused by wildfires, floods and droughts — is harder to monetize.