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Climate Systemic Risks Are Mounting

Climate change is not only destroying lives and livelihoods, but also introducing new systemic risks to the financial system and the broader economy. The warning signs of another 2008-scale financial crisis are flashing red across multiple economic sectors, and behind them looms the collapse of Earth’s natural systems.

WASHINGTON, DC – This June was the hottest on record, and it was followed by the hottest-ever week in early July, which then turned out to be the hottest month on record. Canada’s unprecedented wildfires blanketed huge swaths of North America in smoke; storms in Vermont, New York, and Pennsylvania triggered deadly floods; the Midwest has been experiencing its worst drought in over a decade; Europe is baking; China hit record-high temperatures; and Italy suffered its worst flooding in 100 years.

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