The risk that climate change poses is undisputed. The effects of global warming has risen to the top of the agenda among the media, investors and wider society, fueled by stories of uncontrollable fires and floods. We look at the financial risks posed by an investment that may contribute to, or be affected by, global warming. Following the adoption of the
, governments are endeavoring to transition to low-carbon and more circular economies on a global scale. The European Green Deal aims to make Europe the first climate-neutral continent by 2050. Investors are expected to play a key role in this respect, as enshrined in the EU Sustainable Finance Action Plan and the SFDR.