And that’s exactly what they are doing. Central government and several federal state governments have decided to invest their pension portfolios according to sustainable criteria. C. FINANCIAL SECTOR This brings me to the financial sector itself. Here, too, we have been seeing attempts to adjust to climate change for a long while: by the banking industry, insurers and funds.
Under such circumstances, if the yield on government bonds records a large increase over a sustained period, it will most likely signal either that views on the economy are turning favorable or that the market is warning against an increase in the budget deficit.