"#Finance is starting to 'get' #adaptation... And what is it they ‘get’? Every business in the world will need to act to adapt to a changing #climate and #environmentaldegradation. Every new #infrastructure asset – financial flows of $2.9 trillion a year – will need to be resilient. Where and how we grow #food and use #water will need to change. And we will need to transform our #supplychains and economy to protect our #naturalcapital – fundamental to resilience – upon which our core #commodities and supply chains rely". For leading FIs, adaptation isn't just about managing #physicalclimaterisks, but is a huge opportunity. We urgently need to scale up adaptation and nature finance and this investment can be a win-win for FIs, their clients, investees and society. See: https://lnkd.in/gbewA_Dz
Over the past year, we've worked with 100s of partners across many countries - from Europe to Asia, the Caribbean and Africa - to co-develop tools and evidence to grow #adaptation and #naturefinance based on the best science and research. Here is what we found:
- To a large extent, we already have the metrics and standards we need to operationalise adaptation within finance.
- We’re not short of data, but we are short of skills/capability to use it well.
- Efforts to price and manage risks are however being hampered by current scenarios and approaches that do not capture the risks adequately.
- Taxonomies are everywhere and already being used by many asset managers to structure adaptation-aligned portfolios.
- Integrating resilience into emerging #transitionplans makes sense. So far, firms have taken the ‘low-hanging fruit’ with few signs that adaptation is being fully addressed.
- but, a lack of government action is stifling progress. FIs and corporates struggle to align their plans and investments with adaptation needs when there is no clear plan from government or sense of what good adaptation looks like.
Check out our report and website for a huge number of fully open resources and datasets to support adaptation and nature finance, including our database of climate-related datasets and taxonomies and case studies of applications in financial risk assessment, sovereign credit ratings, nature-based investments and resilient infrastructure. https://lnkd.in/e8nzg4SX
Huge thank you to all of our partners , inc. Climate Arc, NERC: Natural Environment Research Council, Insurance Development Forum, United Nations Office for Disaster Risk Reduction (UNDRR), Green Finance Institute and more. Emma Howard Boyd CBE, Meryam Omi, Dr Iain Williams, Nigel Topping, CMG, Marcia Toledo Sotillo, Ekhosuehi Iyahen, Kamal Kishore, Catherine B..
And huge congrats and gratitude to all the team at Resilient Planet Finance Lab @UniofOxford, the Environmental Change Institute (ECI), University of Oxford and our many collaborators, in particular Jim Hall and friends at the Oxford Programme for Sustainable Infrastructure Systems.
