Threats to Wealth from the Climate Crisis

Philipp Golka

The climate crisis significantly affects private wealth. According to current predictions, trillions of dollars’ worth of assets may face significant devaluation from climate damages and societal efforts to prevent the climate crisis such as a fossil fuel exit. While economists, insurers, and policymakers are developing increasingly precise quantifications regarding the risks and expected losses of such “asset stranding,” sociologists have paid much less attention to the topic. However, this is an important research gap as various social factors such as political decision-making affect asset stranding, while asset stranding itself can have important social consequences. This research project aims to address this gap by developing a sociology of asset stranding. Acknowledging that many contemporary societies are defined by extreme wealth inequalities, particular attention will be paid to individual and organizational actors at the top of the wealth distribution. Developing a sociological perspective on asset stranding, this research project contributes to current debates across the social sciences on the link between assets and climate responses. Disentangling the complex interdependencies between societal dynamics and asset stranding, the project may also inform public and policy debates on pressing climate issues.