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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The surge in the frequency and intensity of climate change impacts has raised the alarm about how this could hamper coastal activities. Several critical ports in the Indo-Pacific region are hubs of international trade and commerce and at the same time vulnerable to typhoons, taller waves and erosion. India’s climate diplomacy at the regional level could activate climate-resilient pathways for port development and management.
After an 18-month stretch without a White House science adviser – the longest any modern president has gone without a science adviser – Trump appoints extreme weather expert Kelvin Droegemeier to the post. Kelvin Droegemeier is vice president for research at the University of Oklahoma and a climate change scientist. His selection was widely welcomed.
Climate change threatens conflict and poverty in the Arab region, according to the UN Development Programme (UNDP). In a report published last week, the agency suggested climate risks could derail development gains, such as the decrease in infant mortality and the achievement of near universal primary education.
The links between climate change and security have started entering regional resolutions through the UN Security Council. Germany, elected for a seat on the Council in 2019-20, will again prioritize climate-related security risks as one of its main agendas. What prospects does a renewed engagement on climate security risks offer and is there scope for preventive participation?