As the Climate Change Conference in Katowice has ended, it would appear the world has taken a step closer to finding a solution, whilst still not doing quite enough. However, there’s no doubt climate change is increasingly on the agenda, and the financial services sector are making preparations for the changes ahead. The Financial Conduct Authority (FCA) published a Discussion Paper on climate change and green finance in October . It asked for input in the following areas:

• climate change and pensions – ensuring that those making investment decisions take account of risks including climate change
• enabling competition and market growth for green finance
• ensuring that disclosures in capital markets appropriately give adequate information to investors of the financial impacts of climate change
• the scope for the introduction of a new requirement for financial services firms to report publicly on how they manage climate risks

Many years ago, green investment seemed quite a niche area, but is it about to become the norm? Financial services is in many ways uniquely placed to be part of the solution. The transition to a low-carbon economy will be large-scale, and filled with challenges, but it will also bring opportunities for investors. Sustainable finance could be a significant part of the solution.

Meanwhile, some of the world’s biggest investors warned of financial crash earlier this month, if governments don’t tackle climate change. These are voices who will likely hold considerable sway.