ESG: the financial costs of climate change

Author: John Crabb | Published: 10 Jan 2020

The financial sector must be doing more to help prevent the material risk of climate change – both for the good of the planet and to mitigate its own exposure.

The financial impact that the undeniable force of climate change is having and will continue to have on an exponential scale is unfathomably high.

The impact can be seen across the world. The recent droughts and wildfires in Australia have had untold effects on the country's economy; hurricanes have been ravaging the Caribbean for several years and Sub-Saharan African cyclones left millions without homes in 2018 – and these are all just the tip of the (melting) iceberg. The list is long and destructive, and each of these instances causes untold damage to affected economies.

Although poorer countries are likely to lose more of their economic output, the financial cost is not localised – but felt across the world. Damage to the...