The impacts of climate change pose a massive risk to the financial sector. Companies that continue to invest, lend, or insure assets that fail to transition to a low-carbon economy or are highly exposed to natural disasters have the potential to lose significant capital. All this means firms need to actively manage their climate-related financial risks.
In this episode, Host Laura Zizzo discusses how the financial services industry can manage its climate-related risks. To set the stage, Laura speaks with Manifest Climate’s Communications Lead, Daina Goldfinger, who reviews the top stories in the climate risk space. Daina discusses the European Union’s sustainable finance rules, how financial firms are urging companies to disclose their environmental impacts, and banking groups’ calls for US regulators to harmonize their climate risk principles.
After that, Laura is joined by special guest Sonja Gibbs, the managing director and head of sustainable finance at the Institute of International Finance (IIF). The two discuss why climate risk is a financial risk, how it’s impacting financial institutions, and how these firms can prepare and move toward climate resilience.
Climate Compass is a production by Manifest Climate, the leading Climate Risk Planning software.