How investors are approaching Europe’s record-breaking heatwave
People jump in the Trocadero Fountain near the Eiffel Tower during a heatwave in Paris on June 22, 2026.
Julien De Rosa | Afp | Getty Images
LONDON — Multiple Western European countries have spent this week grappling with record-smashing heatwaves, with red alerts issued in the U.K., France, Germany, Switzerland and Italy that warn of “a risk to life for even the healthy population.”
Temperatures soared well above 40 degrees Celsius (104 degrees Fahrenheit) in various regional towns and cities, with “tropical nights” offering little respite from the well-above-average June heat. Old buildings and infrastructure, limited uptake of air conditioning and little acclimatization to those highs mean European populations are less equipped to cope with such temperatures than other parts of the world.
Amid warnings that climate change means scorching temperatures are set to become the norm, some investors are rethinking how to prepare their portfolios for the societal changes anticipated alongside a future of sweltering summers.
Building resilience
Stephanie Niven, co-portfolio manager of the Global Sustainable Equity strategy at Ninety One, told CNBC on a call on Friday that her team took the view that the rise of intense weather conditions in Europe was creating a structural growth opportunity for investment.
The Global Sustainable Equity Fund’s management seeks out companies that have products and solutions that “lean into helping people respond and build resilience in a challenging time,” she said. Its investments include companies focused on decarbonization, climate adaptation, water and pollution management, financial inclusion, and healthcare impact.
One of the broad areas the fund is focused on is insurance, Niven said, naming broker and reinsurer Aon and Canadian insurer Intact Financial as two of its holdings in the sector.
She told CNBC that Ninety One’s team is particularly interested in firms “with policies that help those struggling with climate change and allowing the world to become more responsive.”
“We’re seeing insurers [creating] more up-to-date climate modeling in their risk systems,” she said.
Tourists with umbrellas and fans in St Mark’s Square, at the height of a severe heatwave, on June 24, 2026 in Venice, Italy.
Simone Padovani | Getty Images News | Getty Images
An anticipated El Niño event, expected to occur later this year, could also disrupt weather norms and shake up the insurance industry in a way that investors should watch, Niven added.
“This could be the shock that disrupts what’s been a soft cycle for a number of years,” she said. “A stronger El Niño could have quite an interesting impact on the insurance cycle – fewer but more powerful hurricanes and an increased likelihood of huge loss events, which would be quite a shock to the insurance cycle. A very large event could mean a large opportunity in the sector.”
“We like companies that lean into the protection gap and enable the matching of risk and coverage,” she…
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