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.
French environment minister Nicolas Hulot has resigned live on national radio in a surprise move that will come as a blow to president Emmanuel Macron’s green credentials. Nicolas Hulot had not made the French president aware of his decision to quit, he told radio presenters, adding his time in office had been an ‘accumulation of disappointments’.
Liberia’s largest palm oil producer, Golden Veroleum Liberia (GVL) pulls out of the Roundtable on Sustainable Palm Oil (RSPO) – how can rural communities cope with the impacts? The forests near GVL’s Liberian plantations are not only sacred sites of the region's people but also heavily populated with chimpanzees, leopards, pygmy hippopotamus and forest elephants which are significant not only to the local ecosystem but globally.
Mine closures have caused social and political turmoil in many regions, for example in South Africa. But there are ways of planning and managing the phase-out so that when the inevitable happens, people are better prepared. A new study looks at opportunities beyond mining and finds that infrastructure that supports mining can also be put to new use.
Population pressure, a lack of economic opportunities, environmental degradation, and new forms of travel are contributing to human displacement and unsafe migration on an unprecedented scale. And as millions more people see climate change erode their livelihoods, the problem will get worse in the absence of visionary global leadership.