Combating global greenhouse emissions and implementing the transition to net-zero requires unprecedented financial investment. Financial institutions are critical players because of their role in allocating capital and ability to act as a catalyst to achieve better ESG outcomes in society generally.
A number of factors are driving up the incidence of climate related litigation and enforcement which has been most marked in North America but other regions are now catching up. Financial institutions given their critical place in financing economic activity are increasingly the focus of action. Financial institutions are well advised to prepare for and mitigate the risk, for example, from reviewing their corporate strategies around climate change and carbon reduction to taking note of regulators’ expectations.