Climate pragmatism in a fragmented world

ACHIEVING net zero as soon as possible is critical for safeguarding our economy and society. Yet, doing so by 2050 through a finance-led transition now seems out of reach. As a result, investment institutions, banks and insurers are getting pragmatic: preparing for the worst while still aiming for the best, under the circumstances.

The circumstances are that our world is increasingly fragmented. Physical impacts differ drastically by location, climate policies differ substantially by markets, as do energy mix and cleantech adoption.

Pinpointing exposures

Glimmers of what “the worst” might look like are coming into view. The cost of hurricanes, severe thunderstorms and floods amplified by a warming climate has topped US$100 billion for five years running.