The innovations in financial products and technology have also enabled the market players to acquire a variety of risk exposures, transcending their customary role definitions. Furthermore, the regulation of investment banks did not cover prudential oversight and they were allowed to build up excessive leverage.
For example, the National Institute of Water and Atmospheric Research (NIWA) estimates $ billion of property is already exposed to extreme coastal flooding in New Zealand, and that each 10cm of sea level rise puts another $ billion of assets at risk.3 Climate change also implies transition impacts - such as ‘flight shame’ or a shift to plantbased protein that will pose unique challenges for our highly concentrated export economy.