Long a taboo, financial centers such as London, Frankfurt and Paris are starting to think about protecting the climate.
It’s a real shift in thinking, thanks partly to the Paris Climate Summit and one unassuming sentence: cash flows must be brought “into harmony” with a climate-friendly developmental path.
The financial industry has an important role to play if the fight against climate change is to be won as €90 trillion-worth of investments in sustainable infrastructure will have to be made by 2030 to stay below the global warming limit of 2 degrees Celsius, according to the Global Commission on the Economy and Climate.
But DAX company managers often focus on the short term, rather than the long term. Many companies have to publish their balance sheets according to daily share prices and present business reports every three months.