Addressing Climate Risk in Finance

This chapter explores the critical issue of climate risk misrepresentation in financial statements, revealing that 75% of companies fail to accurately disclose such risks. It calls for regulatory reform to better align financial systems with the demands of the net zero transition while examining the historical context of investment practices that prioritize short-term gains over long-term sustainability. The discussion stresses the importance of integrating ecological concerns into financial decision-making to avoid crises similar to the 2008 meltdown amid ongoing climate challenges.