Sustainable Finance and Climate Risk
Climate change is a critical global problem with effects ranging from warmer temperatures and increased water scarcity to more frequent and severe weather events. As countries transition to lower carbon economies, certain markets may become obsolete, other markets may flourish and firms that choose not to address climate change may face new sources of reputational risk. All of these variables can inflict losses in the financial sector and undermine macroeconomic security. Although the physical and transition risks from climate change may present a clear threat to institutional operations, new investment and product offerings are also needed to respond to changing world needs.
GRI is engaged in expanding the financial sector’s understanding of climate risks while identifying proactive responses and new market opportunities.