This report identifies risks for the financial sector which are due to climate change, and develops actions that demonstrate how integrated financial services companies can turn these risks into opportunities.The report highlights that:climate change is real, and happening around us already: it already results in about 160,000 deaths a yearexamples from industry show that proactive strategies tackling CO2 emissions reap economic benefitscutting emissions also brings about other benefits including reducing dependence on energy imports, achieving more reliable energy price levels, ensuring clean air, and creating jobsearly action is needed to provide greater certainty for business, long-term investment and technological change; inconsistent policies or no policies at all simply deter investment banks play an important role in climate-related financing and investment, credit risk management, and the development of new climate risk hedging productsalthough there is increasing evidence to suggest that climate change considerations are starting to permeate into investor thinking, it is an issue that as yet still lacks incorporation into mainstream investment considerations.The report argues that the solution to climate change is essentially to convert the world’s economies to low-carbon technologies, through both alternative energies and more efficient energy conversion. It recommends the financial sector to focus on both developing appropriate risk assessment tools, as well as proactively promoting cuts in emissions. An agenda for action would consist of several steps:financial service providers should call for a reliable, transparent and internationally co-ordinated policy framework as well as for CO2-reduction goals that provide certainty for investment decisions and initiate business opportunities for clientsfinancial service providers should also include climate change risk in their internal governance procedures banks should review and optimise their own carbon risk management and (further) develop assessment tools applied to carbon risks and carbon risk reduction strategies in respect of their own operations and on a voluntary basis banks should adapt frameworks such as the Global Reporting Initiative (GRI)asset managers should help company management understand how climate change is impacting their business and what strategies they can employ to minimise its risks or maximise opportunities from itasset managers should also request and reward external research providers e.g. brokers to produce consistent, high quality, long-term research which incorporates extra-financial issues such as climate change asset managers should also develop innovative investment vehicles that capitalise on changes in climate change policy and regulation.