This new research program that aims to integrate future risks and challenges, notably those related to climate change, ecosystem service loss, and social resilience, into financial processes and regulations. The program will act as host to 2DII’s research and partnerships with financial institutions, central banks, NGOs, academia, and financial policymakers on three key areas:
– Developing performance standards and metrics to define what is a ‘long-term investor’ and a ‘long-term bank’;
– Designing risk management tools and frameworks to quantify climate change-related risks and related issues, notably ecosystem service and biodiversity loss, and threats to social cohesion & resilience;
– Building capacity, policies, and incentives to help financial institutions and supervisors mitigate and adapt to future risks and challenges.