According to a recent LinkedIn post from First Street, the company used its Forecast 2026 event to spotlight how climate and geographic factors may increasingly shape capital allocation decisions. The discussion, featuring representatives from Amundi, Blue Owl Capital, and KKR, reportedly focused on how hazard exposure, insurance costs, and local economic trends could drive regional divergence in risk and returns.
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The post suggests that these dynamics may lead to pockets where risk is underestimated or mispriced, with potential implications for long-term portfolio performance. For investors, this emphasis indicates growing market interest in integrating granular climate and location data into asset selection and risk management.
As shared in the LinkedIn post, the conference then shifted to the asset level, examining how climate risk may affect critical infrastructure and real estate globally. Executives from Ventas, Inc., BXP, Inc., and Apollo Global Management, Inc. joined First Street’s head of strategic accounts to discuss how natural hazards might influence underwriting, deal screening, and expectations for cash flow.
This focus points to a potential increase in demand for climate-risk analytics across real assets and credit markets, particularly where insurance costs and hazard profiles could pressure valuations or operating income. For investors, the themes highlighted at the event underscore a broader industry move toward embedding physical climate-risk assessments into investment processes and pricing models, which may affect regional allocation, sector exposure, and long-term return assumptions.