Research & Insights

Resilience in the Age of Uncertainty - Powering Transition Investment Amid Global Challenges

In our contribution to the NYU Abu Dhabi Transition Investment Lab's annual report, in particular on the theme "Understanding Inequality as a Systemic Risk to Financial Markets and Portfolios", our Executive Director, Delilah Rothenberg, makes the case that inequality has earned its place alongside climate and nature as a defining systemic risk of our time. Modern finance has not yet developed the analytical tools that enable diversified investors to adequately factor externalized social costs into their risk-return analysis. As a result, it's increasingly unclear whether markets can facilitate the price discovery needed to reflect the true value of human, social, and natural capital.