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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Ignoring cross border impacts of large infrastructure projects will spark conflict along rivers, argues Peter King. National level environmental impact assessments that ignore cross border impacts are likely to create conflict between countries.
Peat areas have played a pivotal role in conflicts globally, and have also been a point of contention during post-conflict recovery. Communities in Southeast Asia as well as in the countries of the Congo are facing challenges as finding political solutions for this problem.
On a visit at short notice to Germany, Russian President Vladimir Putin has met with German Chancellor Angela Merkel to discuss a range of bilateral and international issues, including the conflicts in Syria and Ukraine, and the future of the controversial gas pipeline project Nord Stream 2. The pair met for the second time within just three months to talk about the project.
Australia’s new prime minister will not walk away from the Paris climate agreement, although his new policies now make it unlikely the country will meet its emissions reduction goal. Ongoing trade talks with the EU could also hinge on how climate policy continues to develop.