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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Several climate security studies have assessed the risks of climate change to security and examined potential foreign policy responses, but the connection between climate change and foreign policy remains underexplored. The new Climate Diplomacy Report of the German Foreign Office takes up the challenge.
Egypt, Ethiopia and Sudan are currently engaged in vital talks over the dispute relating to the filling and operation of the Grand Ethiopian Renaissance Dam on the Nile River. While non-African actors are increasingly present in the negotiations, the African Union (AU) is playing a marginal role.
Climate change was more central than ever at this year’s Munich Security Conference (MSC), the leading international forum for senior military, security and foreign policy leaders. The release of the inaugural “World Climate and Security Report 2020” (WCSR 2020) by the Expert Group of the International Military Council on Climate and Security (IMCCS) should help policymakers take effective action.
The mission of the Munich Security Conference is to “address the world’s most pressing security concerns”. These days, that means climate security: climate change is the ultimate threat multiplier, and anyone discussing food security, political instability, migration, or competition over resources should be aware of the climate change pressures that are so often at the root of security problems.