Climate-Related Financial Risks And Community Vulnerability In India

As India's financial sector addresses its climate risks, it must consider the vulnerabilities of its small borrowers, offering valuable lessons for emerging economies on building just transitions.

The notion that economic growth necessarily leads to prosperity is increasingly being questioned.¹ Amid rising environmental degradation, ecological breakdown, and widening inequality there is growing consensus that economies – and the businesses that drive them – need a critical reexamination of their objectives and outcomes.

The concept of double materiality has taken root in this institutional environment; it asks that firms factor and disclose not just development and environmental risks to their businesses, but how their actions (including ones that are sustainability-led) impact the wider society, environment, and the economy.²