Climate change is one of the biggest challenges of our time. The world is observing increased climate-related extremes such as heatwaves, floods, droughts etc. causing significant vulnerability to humans, ecosystem, and the infrastructure. In addition to physical risks, there is a growing impact on economies and the global financial system. In this context, the Paris Agreement (2015) was a landmark achievement in bringing together all nations to undertake ambitious efforts to combat climate change. As countries transition towards a low carbon economy, businesses also face increased risk in the form of changes in government policies, technological upgrades, shifting market preferences and consumer demand etc. It becomes vital for each institution to understand, identify, and incorporate these risks within their businesses. The financial institutions across the world are increasingly incorporating non-financial factors - Environmental, Social and Governance (ESG) to identify material risks and growth opportunities as part of their strategy and risk management Read More