Investors are, by necessity, experts at taking calculated risks. They scan the horizon of our ever-evolving world for new and sometimes unexpected economic challenges so that they can put their money where it’s most likely to grow. Today, financial institutions are facing one economic challenge that will fundamentally change the way we do business—climate change.
Climate change is a risk that, while significant, is oftentimes misunderstood by the financial community. A warmer world introduces new, complex and interwoven layers of risks ranging from physical, financial, regulatory and reputational. So WRI and the UNEP Finance Initiative (UNEP FI) worked with more than 150 participants from the financial sector to create the Carbon Asset Risk Discussion Framework, a tool to help financial institutions undertake the difficult task of identifying and understanding climate-related risks to their portfolios.
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The scope of national security is expanding beyond violent threats to encompass a broader array of dangers. In an article for World Politics Review, CFR's Stewart M. Patrick assesses the implications of COVID-19 and climate change for the theory and practice of national security.
Although there is no causality nor direct and automatic link between climate change and conflict, we can see that climate change can intensify conflict drivers and make it harder to find stability. The online workshop "Climate change, conflict and fragility: Increasing resilience against climate-fragility risks", organised by the European Peacebuilding Liaison Office (EPLO) and adelphi, looked into this complex relationship.
Since the outbreak of the COVID-19 pandemic, numerous parallels have been drawn between this health crisis and the climate crisis. Science plays an important role in advising decision makers on how to ensure sustainable crisis management and a precautionary approach to avoid harmful repercussions, particularly where we do not yet know all the consequences of our actions. [...]
Decarbonisation won’t come as fast as the pandemic. But if fossil fuel exporters are not prepared for it, they will face an enduring crisis. The EU can help.