But today there are other reasons why you cannot afford to ignore sustainability. Sound risk management means the financial sector needs to worry about sustainability risks. We simply cannot sit back. Because we have reached the stage where the cost of inaction is greater than the cost of action. Suppose you have major investments in high-carbon assets.
These assets have retained their value for many years in the past. But can we just assume that these assets will retain their value in the years to come as well? Of course not. During the transition to a low-carbon economy, these assets could become unwanted or obsolete, as new, cleaner and cheaper energy replaces them.