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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Time is running short for countries to decide the practical details of how the Paris Agreement will be brought to life, known as the Paris “rulebook”.
The world risks crossing the point of no return on climate change, with disastrous consequences for people across the planet and the natural systems that sustain them, the United Nations Secretary-General António Guterres warned on Monday, calling for more leadership and greater ambition for climate action, to reverse course.
China’s vision of a global energy system overemphasises the benefits of connectivity. Planners and investors also have to consider the potential impacts on biodiversity and local community livelihoods from different power generation methods and find ways to prevent them.
A new report analyses how the transition to a low-carbon economy – and the minerals and metals required to make that shift – could affect fragility, conflict, and violence dynamics in mineral-rich states.