• Sustainable finance

Adaptation and mitigation, the two sides of climate action. Experts give their ‘Perspectives’

Published On 06.03.2024

Storms, floods, droughts, forest fires, recent extreme weather events show that the effects of climate change are already tangible and that the transition must not be limited to the reduction of greenhouse gas emissions. This must be accompanied by adaptation measures to anticipate and limit physical risks. In the latest publication of BNP Paribas’ Perspectives, experts suggest frameworks to incorporate these adaptation measures and how financial institutions can help with their implementation.

What approach should the banking sector take to address physical risks? 

For a bank, climate risks may be linked to its own activities (offices located in a high-risk area), to assets financed (residential mortgages in high-risk areas), or the presence of its customers’ activities (a company consuming fresh water in an area where droughts are increasingly frequent). How can these risks be managed when they can vary from region to another? Climate models, asset location, vulnerability assessment…Marie-Stéphanie Diouf, Senior Risk Manager at BNP Paribas looks at solutions to address these challenges.

Discover her analysis in the latest edition of Perspectives

Why should the financial sector invest in adaptation measures?

Beyond risk management, the adaptation challenge offers many investment opportunities to the private sector, valued at $2 trillion by 2026. Moreover, companies with climate adaptation plans will pose a lower credit risk over time. Indeed, mitigation and adaptation measures are complementary both to reduce climate risks and to limit the damages to systems and infrastructures. BNP Paribas’ experts explain how insurers and banks can help companies with their climate adaptation trajectory.

Read the experts’ opinions in Perspectives

What are the sectoral and geographic impacts?

What is the main challenge of adaptation? Predicting the heterogeneous impacts of climate change on each sector of activity in different regions of the world. Which regions are most at risk from natural disasters? What will the EU agriculture sector look like in 2050? How does SNCF Réseau strengthen the resilience of the railway to climate change? Discover innovative solutions to prevent these climate impacts.

Explorez les dernières innovations dans Perspectives

How do some companies experiment with new adaptation solutions?

How can pasta production be protected from the impacts of climate change? What solutions for regenerating damaged forests or degraded and agricultural land? Let’s take a look at Maspex, Poland’s biggest food group, and Le Printemps des Terres, a purpose-led company, which invest respectively in the adaptation of agricultural crops and forests.

Discover these case studies in Perspectives

Overview of Perspectives’ latest issue on physical risks and climate adaptation

Who is behind "Perspectives"? 

“Perspectives” is a quarterly publication dedicated to sustainability topics and developed by the Network of Experts in Sustainability Transitions (NEST) Coordination Team. This global internal network brings together over 700 sustainable finance experts from all BNP Paribas business lines and functions, by pooling their expertise to support the transition of Group clients.

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