“It is vital for our long-term planning and asset allocation decisions that governments work closely with investors to incorporate Paris-aligned climate scenarios into their policy frameworks and energy transition pathways,” the statement said.

The period from January through May produced a global temperature 1.67 degrees F above the 20th-century average of 55.5 degrees F, making it the third-hottest year to date on record. Record-breaking heat affected parts of the southern half of Africa; Australia; southeastern Brazil; northern North America; Asia; parts of the southern oceans; the Barents Sea; and areas of the North Pacific Ocean.  

Temperatures have already risen about one degree Celsius since pre-industrial times. Scientists warn further increases risk triggering tipping points that could render swathes of the globe uninhabitable, devastate farming and drown coastal cities.

In return, Woods Hole’s research could give McKinsey a lead into the business of helping companies adapt to a new reality ushered in by climate change – whether it be moving headquarters, planning for a heavy carbon tax or reaching a limit on the amount of insurance the U.S. government can offer.