We’ve already seen climate refugees and climate wars, yet the business world has been rather slow to react. Many businesses operate with the denial of the economic effects of climate change. Today the head of the Bank of England, Mark Carney, has warned the financial world that climate change is the biggest challenge we will collectively face. And we have to do so now!
It’s really good to finally see bankers, economists, and corporate entities catch up to the knowledge put forth by hundreds of organizations from the last millennium.
The U.K. central bank’s Governor Mark Carney, who also chairs the Financial Stability Board, as well as the Group of 20 advanced and developing nations’ task force on financial regulation, said climate change could undermine stability in three ways–by causing banks and insurers direct losses from extreme weather, by creating future liabilities for financial firms and their clients from those seeking compensation for climate-related losses and by the unexpected costs of shifting toward a low-carbon economy.
“The combination of the weight of scientific evidence and the dynamics of the financial system suggest that, in the fullness of time, climate change will threaten financial resilience and longer-term prosperity,” Mr. Carney would say in a speech to insurers in London, according to a text of his remarks.