Globally, financial services are well positioned to contribute to the transformation needed for sustainable futures and will be critical for supporting corporate activities that regenerate and promote biosphere resilience as a key strategy to confront the new risk landscape of the Anthropocene. While current financial risk frameworks focus primarily on financial materiality and risks to the financial sector, failure to account for investment externalities will aggravate climate and other environmental change and set current sustainable finance initiatives off course. This article unpacks the cognitive disconnect in financial risk frameworks between environmental and financial risk. Through analysis of environmental, social, and governance ratings and estimates of global green investments, we exemplify how the cognitive disconnect around risk plays out in practice. We discuss what this means for the ability of society at large, and finance in particular, to deliver on sustainability ambitions and global goals.
Carl Folke, Stephen Polasky, Johan Rockström, Victor Galaz, Frances Westley, Michèle Lamont, Marten Scheffer, Henrik Österblom, Stephen R. Carpenter, F. Stuart Chapin, Karen C. Seto, Elke U. Weber, Beatrice Crona, Gretchen C. Daily, Partha Dasgupta, Owen Gaffney, Line Gordon, Holger Hoff, Simon A. Levin, Jane Lubchenco, Will Steffen, Brian Walker
Carl Folke, Stephen R. Carpenter, F. Stuart Chapin, Owen Gaffney, Victor Galaz, Holger Hoffmann, Michèle Lamont, Stephen Polasky, Johan Rockström, Marten Scheffer, Frances Westley, Henrik Österblom
Peter Søgaard Jørgensen, Raf E. V. Jansen, Daniel Ortega, Lan Wang‐Erlandsson, Jonathan F. Donges, Henrik Österblom, Per Olsson, Magnus Nyström, Steven J. Lade, Thomas P. Hahn, Carl Folke, Garry Peterson, Anne‐Sophie Crépin
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