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.
For the complete article, please visit the World Resources Institute's Blog.
Resource consumption has grown exponentially over the past: between 1970 and 2010, the quantity of extracted materials has tripled. Not only the overall amount of resources extracted and consumed has risen rapidly, but also the diversity of resources has grown. While half a century ago, only a few materials such as wood, brick, iron, copper, and plastics were in high demand worldwide, today products are more complex and require a wide range of materials.
Times of war can result in rapid environmental degradation as people struggle to survive and environmental management systems break down resulting in damage to critical ecosystems. For over six decades, armed conflicts have occurred in more than two-thirds of the world’s biodiversity hotspots thus posing critical threats to conservation efforts. [...]
More than 4,700 delegates, including environment ministers, scientists, academics, business leaders and civil society representatives, met in Nairobi for the UN Environment Assembly, the world’s top environmental body whose decisions will set the global agenda, notably ahead of the UN Climate Action Summit in September.
Mid february, the EU's foreign affairs ministers welcomed the Commission’s strategic long-term vision for a climate neutral Europe. Ministers also called for urgent and decisive action to strengthen the global response on climate change and restated the EU’s determination to lead the way on accelerated climate action on all fronts.