Climate Finance

If your work deals with finance, you must understand how the real-world impacts of climate change are reshaping stakeholders’ expectations. Businesses cannot sit back and be passive spectators of the government’s actions. Rather, they need to participate in efforts to combat climate change and contribute in different ways. Many long-term investors are increasingly concerned that failure to act could endanger the long-term returns on their assets. BlackRock CEO Larry Fink has already issued several warnings in letters to shareholders.

Climate Finance will help you act in a positive way. It provides a comprehensive overview of climate-related financial issues. Finance is about linking demand for capital to suppliers of capital. Defined in this broad sense, finance (including financial players such as shareholders, debtholders, capital markets, regulators/central banks, and boards) has an important role to play in tackling the challenges ahead. The book covers every aspect of climate-related finance and disentangles the complex layers of decision-making around it.

Climate Finance:

• Provides an in-depth understanding of the various aspects of climate finance, from the risks and opportunities, to the demand and supply of capital, to the impact of global policies.
• Presents frameworks for readers to help them better understand the field, and how finance and climate are linked.
• Covers all the financing activities of companies, both through the debt side and the equity side, while addressing the financial market aspects of these activities (including green finance instruments, sustainability-linked products, ESG investment, climate financing, institutional investors, ESG ratings, activist investors, etc.).
• Allows reader to assess their contributions, risks, opportunities, and personal role in the coming transition
• Helps investors and companies make more informed capital allocation decisions by appropriately incorporating all risks
• Provides empirical evidence for the links between financial actions and climate related risks and opportunities
• Highlights relevant frameworks and evidence from markets, academic research, and practical case studies featuring leading companies and investors.

In addition to being a useful guide for finance leaders and practitioners, this book can also be used in business education (MBA, master’s, and executive education programs). It is based on many years of teaching and consulting with world-class corporations from all continents of the world.

A big funding gap exists between what we have right now (the Paris Agreement signatures) and what we need in the future (the actual infrastructure, supply chains, and corporate frameworks to deliver on those agreements). It is clear that bridging this gap should now be the priority for executives, board members, and investors. Climate Finance will help you be part of the solution to the greatest challenge facing humankind today. The book will help you make the right choices and take meaningful action to protect the long-term interests of your organization against the financial threats posed by climate change.