Climate change stocks are publicly traded companies with businesses geared towards reducing the impact of climate change on the global economy. Climate change has the potential to have a devastating impact on the economy and stock market. The rise in temperatures from global warming is linked to more natural disasters, coastal flooding, and a range of other issues. 

According to a report by Swiss Re, a leading global insurance provider, the effects of climate change could slash global economic output by 11% to 14% by 2050. That could wipe out as much as $23 trillion of global gross domestic product. Such a decline in global economic output would have a significant effect on the stock market.