Introduction to Climate Change

Simon Thompson

Understanding the science of climate change is vital for understanding the future of finance. In this video, Simon gives an introduction to the science behind climate change and outlines the current political, scientific, and financial situations relating to this phenomenon.

Climate Crisis

Sustainability Essentials

Overview

The scientific consensus is that human activities have had a significant impact on climate change over the past 200 years. The Paris Climate Change Agreement was implemented to attempt to mitigate climate change and its projected effects, namely mass migration. The Agreement specifies that the financial sector must track investments that are financing activities that help to mitigate climate change, or detract from this goal. Monitoring can help assess the extent of transition risk, including stranded asset risk, which can be a shock to the financial markets if the “carbon bubble” bursts.

Key learning objectives:

Explain how the financial sector can help mitigate climate change, according to the Paris Climate Change Agreement
Explain how banking and finance are impacted by climate change
Define stranded asset and how they pose a risk to the economy

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Summary

Expert

Simon Thompson

Simon is the Chief Executive of the Chartered Banker Institute and co-author of Green Finance: Principles and Practice. He is also a former Vice President of the European Bank Training Network, and is currently Chair of the Global Banking Education Standards Committee. He specialises in professional ethics, and green and sustainable finance.