1in1000 to show what financial ‘long-termism’ means in practice with metrics, tools and policies

1in1000 is a programme by 2°Investing Initiative that’s supported by EIT Climate-KIC and aligned with its Long-Termism Deep Demonstration. It brings together research projects on long-termism, climate change, and (inter-)connected future risks for financial markets, the economy, and society. Its launch report outlines its purpose, ideas and vision over the next decade.

We live in an era of future challenges and risks threatening the financial sector, economy, and society. Their ascent has begun, visible in the rise of extreme weather events and nascent industrial transformation related to mitigating these events. There is strong evidence that these risks are not meaningfully addressed in today’s financial markets and the regulatory frameworks that supervise them.

At the heart of those future challenges and risks is the climate crisis and (inter-)connected risks and challenges, notably ecosystem and biodiversity losses, and the breakdown of social cohesion and resilience. In response to this challenge, the 2° Investing Initiative launched a new research programme called 1in1000 to support financial markets and society more broadly respond to these threats.

The name of the research program speaks to the perceived low probability in the short-run of these risks, limiting short-term mitigation and adaptation efforts, the inevitability of these risks materialising in the long-run and the related imperative to respond to them, as well as the lack of capacity and resilience in markets when these risks will materialise.

1in1000 focuses on the finance sector as an agent that is both exposed to these risks and, through its role in capital intermediation, is also in a crucial position to mitigate and adapt to these risks. The finance sector currently does not respond to these two dynamics as a result of short-termism (‘closed eyes’), the complexity and uncertainty of modelling long-term issues, and a lack of incentives to respond to the risks in the short-term. In order to respond to this challenge, the goal of the 1in1000 research programme is to:

  • ‘Open the eyes’ through the use of long-term investment metrics
  • Provide ‘glasses’ to see and navigate through the complexity and uncertainty of future challenges and risk with the use of risk(management) frameworks and tools
  • Prepare and provide the path to mitigate and adapt to these risks through regulatory incentives and evolving practice.

In this report, the 1in1000 research programme proposes a roadmap to move towards mitigating and adapting to these risks over the next decade in financial markets, the economy and society. The report addresses four questions and is structured accordingly:

  • What are the impacts of major future risks and challenges?
  • What role do financial markets play in measuring and mitigating/adapting to these risks?
  • What prevents financial markets from doing so?
  • What can we do to push for action from the financial markets and financial regulators/supervisors and what is the vision for the way forward?

Read the report

 
Location
Related Goal
Goal 11: Democratise climate risk information
Articles you may be interested in
In The News
The role of cities and regions in transforming wood value chains

Climate smart forest economies It’s a crucial decade for...

The role of cities and regions in transforming wood value chains
In The News
Glasgow City Region pioneering forest economy innovation to drive climate acti...

Scotland’s largest city region is actively tackling climate change...

Glasgow City Region pioneering forest economy innovation to drive climate action
In The News
Forging sustainable timber construction in Europe

EIT Climate-KIC and Built by Nature, announce an initiative...

Forging sustainable timber construction in Europe
In The News
EIT Climate-KIC launches new Circularity Thinking training programme

EIT Climate-KIC is launching Circularity Thinking courses to tackle...

EIT Climate-KIC launches new Circularity Thinking training programme
In The News
EIT Climate-KIC announces four winners of EIT Community Booster

EIT Climate-KIC selected four cleantech start-ups to be part...

EIT Climate-KIC announces four winners of EIT Community Booster
In The News
Science reveals last paths to stop irreversible planetary damage

Climate change is going to get worse, but curbing global warming is...

Science reveals last paths to stop irreversible planetary damage
In The News
EIT Community presents New European Bauhaus Ideation Awards winners

Supported by the EIT Community, the New European Bauhaus...

EIT Community presents New European Bauhaus Ideation Awards winners
In The News
EIT Climate-KIC joins forces with the Government of Ireland to stimulate clima...

The Ministry of Agriculture, Food and the Marine of...

EIT Climate-KIC joins forces with the Government of Ireland to stimulate climate innovation in the agri-food sector
In The News
Climate Lab: EIT Climate-KIC co-initiates hotspot for Vienna’s climate ambit...

Climate Lab in Vienna will give climate actors an...

Climate Lab: EIT Climate-KIC co-initiates hotspot for Vienna’s climate ambitions
In The News
Seven takeaways from the latest IPCC report

On 28 February, the IPCC Sixth Assessment Report (AR6)...

Seven takeaways from the latest IPCC report
In The News
EIT launches new Global Outreach website

The European Institute of Innovation and Technology (EIT) has...

EIT launches new Global Outreach website
In The News
EIT Climate-KIC and Amazon launch call for sustainable start-ups

Working on transformative, systemic innovation to accelerate a net-zero...

EIT Climate-KIC and Amazon launch call for sustainable start-ups
In The News
Votes open for the 2021 New European Bauhaus Ideation Awards – Audience Awar...

Do you want to support innovative solutions that integrate...

Votes open for the 2021 New European Bauhaus Ideation Awards – Audience Award
In The News
Brill Power’s new innovation radically increases battery life and storag...

Brill Power, supported by EIT Climate-KIC, has launched the...

Brill Power’s new innovation radically increases battery life and storage capacity
In The News
EIT Climate-KIC CEO Dr. Kirsten Dunlop gives TEDx Talk

EIT Climate-KIC CEO Dr. Kirsten Dunlop delivered a talk,...

EIT Climate-KIC CEO Dr. Kirsten Dunlop gives TEDx Talk
In The News
Putting theory into practice: EIT Climate-KIC Pioneer innovating the Greek mar...

To tackle complex climate challenges, we need a broader...

Putting theory into practice: EIT Climate-KIC Pioneer innovating the Greek maritime sector
In The News
EIT launches call for proposals to boost innovation in Higher Education Instit...

Unlocking the potential of higher education institutions for innovation...

EIT launches call for proposals to boost innovation in Higher Education Institutions
In The News
Dolomites forging climate resilience

The Italian Dolomites, a UNESCO World Heritage Site, are...

Dolomites forging climate resilience
In The News
People-powered resilience: Andalusia announces new climate action plan

The region’s climate action plan has been announced, with...

People-powered resilience: Andalusia announces new climate action plan
In The News
Built by Nature: new initiative to accelerate the transition to sustainable co...

The built environment accounts for close to 40 per...

Built by Nature: new initiative to accelerate the transition to sustainable construction in cities
In The News
The State of California and EIT Climate-KIC advance partnership for climate in...

Glasgow, 8 November – The California Governor’s Office of...

The State of California and EIT Climate-KIC advance partnership for climate innovation
In The News
COP26: UN Climate Change and EIT Climate-KIC partner to establish new Global I...

A new digital Global Innovation Hub has been launched at...

COP26: UN Climate Change and EIT Climate-KIC partner to establish new Global Innovation Hub
In The News
ClimateLaunchpad announces 2021 competition winners

EIT Climate-KIC’s ClimateLaunchpad – the world’s largest green business...

ClimateLaunchpad announces 2021 competition winners
In The News
EIT Cross-KIC New European Bauhaus launches Ideation – Deadline Extended

EIT Climate-KIC has launched a call for ideas on...

EIT Cross-KIC New European Bauhaus launches Ideation – Deadline Extended
In The News
Call for proposals: Scaling the New European Bauhaus Ventures

The European Institute of Innovation and Technology (EIT) has...

Call for proposals: Scaling the New European Bauhaus Ventures
In The News
Glasgow City Region in the race to resilience

Glasgow, which is hosting this year’s UN Climate Change...

Glasgow City Region in the race to resilience
In The News
Gipuzkoa’s quest for sustainability

Gipuzkoa, the smallest Spanish province located in the Basque...

Gipuzkoa’s quest for sustainability
In The News
EIT Climate-KIC to host week-long celebration of climate innovators

The EIT Climate-KIC Week of Action will celebrate, recognise...

EIT Climate-KIC to host week-long celebration of climate innovators
In The News
EIT Climate-KIC launches new series of circular economy courses

As companies and practitioners around the world are looking...

EIT Climate-KIC launches new series of circular economy courses
In The News
NetZeroCities: the new project leading European cities’ transition to net-ze...

Starting in October 2021, the new project NetZeroCities will...

NetZeroCities: the new project leading European cities’ transition to net-zero emissions by 2030