CGLN hosts webinar as part of Climate Week 2021

27th September 2021
3 MINS

Finance is key to solving the climate crisis. We not only need significant resources to adapt to the effects of a changing climate, but a resilience in our economic system that the pandemic has shown needs to be strengthened.

 

On 23rd July, as part of Climate Week NYC, the Clean Growth Leadership Network hosted a webinar on the role of finance in solving climate change. Chaired by CGLN Founder, Lord Browne of Ladyton, the panel consisted of Julian Enozi (CGLN Fellow and CEO of Pool Reinsurance Ltd), Dr Carol Bell (Director of Chapter Zero) and Keith Tuffley (Co-Head, Sustainability and Corporate Transitions at Citi).

Watch the webinar in full here. 

We not only need significant resources to adapt to the effects of climate change, but we need added resilience in our economic systems. Two days before our event, President Biden announced that the US would double financial aid given the developing countries susceptible to the deteriorating climate crisis. But while President Biden seems confident that the developed world will meet a collective $100bn to fund solutions, Prime Minister Johnson only days before stated he was only 60% confident that the money would be sourced.

Our webinar conversation focused on issues such as the absence of a global reporting framework for climate risk, the role business leaders can play in being part of the solution to the climate crisis, the importance of increased business resilience, the carbon offsetting market and necessary collaboration between government and financial services.

Dr Bell outlined that all companies will be exposed to climate risk and described the current metric system as an ‘alphabet soup’. She went on to outline the greater importance of individual boards determining their own baselines that are authentic to the aims of their business and congruent to the views of those who work within them. It will be important for all business leaders to gain a better understanding of risk in order to build greater resilience in their business models and to ensure capital is committed in a way that is sustainable for the businesses.

Julian Enoizi outlined that as a 350 year-old industry, the insurance sector will need to undergo fundamental change to meet the challenges it faces, as what we used to call one in a hundred events are happening on a significantly more frequent basis. While the insurance sector was not always the most efficient at responding to such problems, it is taking steps to tackle problems, which emerge on both sides of the balance sheet. The industry needs to design an economic model which can deal with novel risks as well as focus on other services it excels at outside of risk financing, such as modelling, incentivizing behaviour and loss adjustment.

Keith Tuffley told the audience that a baseline of information will be essential for carbon-intensive industries to demonstrate their sustainability progress. Keith argued that variations in current ESG metric should not necessarily be seen as negative, highlighting the complexity of the climate challenge and the benefits that variation on metric measurement can provide. In addition, we know that the planet needs capital to not just halt the damage, but to regenerate a lot of what we have damaged. Properly structured, offsets are beneficial to the planet, but they will not be a singular answer and must be part of a wider solution.

Lord Browne made the point that being limited to one hour, the webinar itself could only begin to touch upon the important topics. The purpose of our network events are to provide a ‘taster for further conversation’.

There is no singular answer to end climate crisis and the world needs bright minds to come together and generate solutions. The CGLN offers a space for such debate – offering the capability to submit content for publication on our platform, a forum for internal discussion and a growing directory of members with whom to connect.

We want an array of voices to be added to the conversation. This could be in response to a point made in this webinar, providing insight into one of our nine topics or sharing a project which could or does act as an innovative climate solution.

If you are an academic, business leader, scientist or professional working in the clean growth space, register your application to become a member of the Network today.

Watch the webinar in full here.