22 May 2015: The UN Environment Programme (UNEP) has released a report, titled ‘The Coming Financial Climate,’ which outlines a set of measures that can be applied to make climate security part of the overall performance framework of a sustainable financial system.

The report is the fourth progress report produced by the UNEP Inquiry into the Design of a Sustainable Financial System (The Inquiry), a project that aims to advance policy options to improve the financial system’s effectiveness in mobilizing capital towards a green and inclusive economy. The report highlights that the climate finance challenge must be placed within the broader context of the green economy and sustainable development, in order to mobilize the needed financing. The measures outlined in the report cover four areas: risk management; capital mobilization; transparency; and a shift in the financial culture.

Among other things, the report highlights the importance of: policies to improve risk management and prudential approaches by banks, insurance companies and institutional investors; and improved reporting of sustainability and climate factors. It concludes by noting that these actions will not only strengthen climate security but that they will also contribute to a more efficient, effective and resilient financial system. [UNEP Press Release] [Publication: The Coming Financial Climate][UNEP Financial Inquiry webpage]