Finally, I will argue that it is essential to clarify the relationship between the investors’ traditional objectives, typically expressed in terms of risk and return, and the environmental objectives defined in the transition plans. The potential conflict between the two might become a serious obstacle to the contribution that the financial system can provide in the fight against climate change. 2.
Regulatory initiatives to improve climate risk reporting  The regulation of environmental, social and governance (ESG) risks of financial and non-financial companies is still in the making. At the European level, this work is at an advanced stage, especially in comparison with the other main jurisdictions. In what follows I will focus on some important measures, without claiming to be complete.