Climate change: How investors can weather a stormy future

Floods, storms, hurricanes and tornados - only the most virulent deniers of global warming and its effects refuse to accept climate change and its effects. But a growing number of investors see new weather patterns and their results as opportunities, as well as problems.

Fund managers are rushing to set up "climate change" funds. Allianz, F&C, HSBC, Jupiter and Schroders are leading the field with new or planned funds and HSBC calls climate change "one of the biggest investment themes for the foreseeable future".

So far, these have attracted tiny amounts - under £100m - but there are hopes of increasing interest which will lead other fund managers to join in if the cash inflow becomes a reality.

The trick managers hope to pull off is spotting firms well placed to respond to a changing climate and its effects on the wider economy. "Global warming will have a huge impact on everything, including transport, property, agriculture and insurance," says Simon Webber, joint manager of Schroders Global Climate Change fund.

"We look for companies that either mitigate climate change or help others adapt to it. We have identified 600 worldwide but our fund only invests in around 75."