Financial Sector Braces for Climate Future
As the environment becomes an increasingly relevant factor to our global future, with issues that range from climate change to resource depletion, the finance world is recalibrating its strategies to accommodate these emerging risks. Investments are evolving to incorporate environmental factors, not just as ethical considerations, but as integral drivers of financial performance.
One of the most significant changes within the financial sector is the widespread adoption of Environmental, Social, and Governance (ESG) criteria. ESG investing evaluates companies based on how they manage their impact on the environment, their relationship with society, and how they are governed. Environmental factors are central to ESG, including, but not limited to, how companies address climate change, res...