Foreword

Rob Fauber

Climate change is the biggest risk multiplier facing the financial markets and the real economy today. Our response to this inter-generational challenge will require unprecedented collaboration, and the window for action is closing fast. However, making sense of where we are on the path to a more sustainable world and what we need to do next is not always straightforward – which is why the insights provided in this book could not be timelier or more valuable.

Over the following chapters, the contributing authors deliver a smart and practical guide that helps us to identify, understand and manage climate risks. The transition to a greener economy will also create opportunities for those who innovate and enhance resilience. The title of the book, Climate Change: Managing the Financial Risk and Financing the Transition, references two of the key ways that the finance sector can help in the move to net zero. From creating the tools and analytics to quantify climate risk to helping channel financing for resilience and adaptation projects, the financial sector has a critical role to play.

As the authors make clear, the response to the climate challenge must be a collective one