Standing at the Crossroads of Trade and Climate Risks
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Amid rising trade and climate policy uncertainties, Southeast Asia is emerging as a focal point for risk and opportunity. This report unpacks the “double jeopardy” facing manufacturers operating in the region: escalating physical-climate threats — like floods and extreme heat — and a shifting trade-policy landscape. With nearly a quarter of MSCI ACWI Index (IMI) market cap tied to Southeast Asian manufacturing operations, investors worldwide have a stake in understanding these evolving dynamics.
Drawing on our suite of climate tools, including MSCI GeoSpatial Asset Intelligence and MSCI Climate Value-at-Risk model, our analysis offers a granular, scenario-based view of potential exposures and losses. With trade and climate risks increasingly shaped by jurisdiction- and location-specific factors, asset-level intelligence adds a critical layer of insight for risk-informed decision-making. Additionally, climate-scenario analysis offers a structured framework to explore possible futures and strengthen preparedness.
Discover how local risk hotspots across a global investment footprint could evolve — and what that means for long-term investment decisions.
Data as of March 31, 2025. Includes 3,293 production facilities in Southeast Asia owned or operated by constituents of the MSCI ACWI IMI as of Dec. 31, 2024. Additional hot days refers to the difference in number of days with wet-bulb globe temperature (WBGT) above 25°C between the NGFS Fragmented World and Net-Zero 2050 scenario in 2050. Values show the % of assets in each heat category by count. This analysis is based on hypothetical scenarios and modeled data. There may be material differences between model results and actual outcomes. Source: MSCI ESG Research, using MSCI GeoSpatial Asset Intelligence
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