Climate adaptation and the financial sector
What role can financial institutions play in making the Netherlands climate-robust, and what opportunities are there for collaboration with governments? Together with the Dutch Association of Investors for Sustainable Development (VBDO), NextGreen has spoken to 20 financial institutions to analyse the playing field.
The financial sector is being hit by the consequences of climate change. At the same time, the sector is playing an important role in making the Netherlands more climate-robust. Together with VBDO and commissioned by Climate-Proof Together (Samen Klimaatbestendig), NextGreen is analysing how governments and the financial sector can collaborate more effectively to make the Netherlands more climate-robust.
Some might believe that climate adaptation is primarily the responsibility of governments, but these interviews show that insurers, investors and banks also have a role to play. Through its clients, the financial sector can be hit by the consequences of climate change. For example, insurers need to reimburse the costs of repair when companies’ assets are damaged by flooding or drought. But also investments and the collateral of mortgages may decline in value due to climate risk and damage. Climate change brings risks for financial institutions, but at the same time, they can also contribute to climate adaptation. For example, they can finance major climate adaptation projects and provide price signals and advice to their clients.
In the project Exploration of climate adaptation in the finance sector, NextGreen and VBDO, commissioned by Climate-Proof Together, analyse the current situation in the financial sector when it comes to climate risks and climate adaptation. The playing field analysis provides an insight into the current status of climate adaptation in the financial sector. Through this analysis, we reveal the opportunities for better collaboration between financial institutions and governments to work towards a more climate-robust Netherlands. We include landscapes, new construction works, and existing buildings.
Read more about this project on the project page Exploration of climate adaptation in the finance sector
