Claudia Sheinbaum, a climate scientist and former Mexico City mayor, has become Mexico's first female leader with a record-breaking electoral victory. Sheinbaum won 58.8% of the votes, though market concerns rose due to potential reforms. Her leadership marks a significant step for Mexico but brings economic and security challenges.
Industry Trends and Research
With climate change and ESG investing all over the news, a recent white paper by Dimensional assesses the academic literature on climate science, and economics and finance, including the implications of climate change for asset pricing and investment choices.
Overall, the literature provides compelling evidence that the impact of climate change risk on asset prices is captured well through the valuation framework, suggesting that investors can use current prices and reliable proxies for expected future cash flows to identify and pursue systematic differences in expected returns, according to Dimensional’s paper, “The Economics of Climate Change.”