UKSIF CEO James Alexander said:
"This report makes clear that the UK's long-term financial stability will depend on how governments respond to the growing threat of climate change.
"Flooding is a key issue facing property ownership, with rising insurance premiums putting 430,000 households at risk of becoming climate mortgage prisoners by 2050. This would leave whole communities facing financial hardship. But it could also disrupt bank lending and pose wider threats to the UK's financial system.
"Rising extreme heat and drought events may similarly place severe pressure on the economy, with the effects felt across business operations, food production and public health.
"These risks are manageable, but the government must take steps now to ensure investors remain confident in the UK's resilience over the coming decades."
