financial risk

Financial Risks in a Warming World: Challenges and Responses

Climate change is increasingly recognised as a material financial risk, impacting banks, investors, and markets through physical and transition risks. Regulators like the RBI are introducing frameworks for disclosure, risk management, and governance to enhance financial stability. While awareness among investors is growing, bridging the gap between recognition and action—through metrics, transition plans, and green investments—is critical to building a resilient, sustainable, and net-zero aligned financial system.