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
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
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
In The News
In the face of complex challenges, Europe stronger together, says EU President...

European Commission President Ursula von der Leyen outlined her...

In the face of complex challenges, Europe stronger together, says EU President von der Leyen
In The News
New IPCC report reveals urgent need for climate innovation

The IPCC’s Sixth Assessment Report has launched. The report...

New IPCC report reveals urgent need for climate innovation
In The News
Moving beyond ‘brown coal’ in Europe’s rural regions

Together with Partners, EIT Climate-KIC is leading a process...

Moving beyond ‘brown coal’ in Europe’s rural regions
In The News
EU’s “Fit for 55” to spur policy innovation for climate action

The European Commission has released its “Fit for 55”...

EU’s “Fit for 55” to spur policy innovation for climate action
In The News
Munich Re and ERGO invest in EIT Climate-KIC carbon removal programme

Major German corporate group sets the ambition to accelerate...

Munich Re and ERGO invest in EIT Climate-KIC carbon removal programme
In The News
23 pilot projects selected by EIT to unlock higher education’s innovation po...

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

23 pilot projects selected by EIT to unlock higher education’s innovation potential in Europe
In The News
Investing in start-ups scales the offering of climate adaptation solutions in ...

A partnership between EIT Climate-KIC and CDC Group, the...

Investing in start-ups scales the offering of climate adaptation solutions in African and South Asian countries
In The News
Irish Aid extends support for innovation and development from the ground up

The Government of Ireland’s development assistance programme, Irish Aid,...

Irish Aid extends support for innovation and development from the ground up
In The News
EIT Climate-KIC showcases climate innovation at R&I Days

EIT Climate-KIC participated in the European Commission’s Research and...

EIT Climate-KIC showcases climate innovation at R&I Days
In The News
Branch Magazine wins Ars Electronica Award for Digital Humanity

Branch Magazine, a collaboration between EIT Climate-KIC, Mozilla Foundation...

Branch Magazine wins Ars Electronica Award for Digital Humanity
In The News
Cross-KIC project to boost circular economy in Western Balkans

The circular economy concept is of crucial importance to...

Cross-KIC project to boost circular economy in Western Balkans
In The News
Exploring new horizons with Pioneers into Practice

Enrolment is now open for placement hosts and participants...

Exploring new horizons with Pioneers into Practice
In The News
Circular bioeconomy start-up receives €2 million from European Innovation Co...

EIT Climate-KIC supported Lixea (formerly Chrysalix Technologies) has received...

Circular bioeconomy start-up receives €2 million from European Innovation Council Fund
In The News
Embracing a new approach to climate change in Moldova

Moldova is one of Europe’s most modest contributors to...

Embracing a new approach to climate change in Moldova
In The News
Krakow: transforming the city towards climate neutrality

Poland’s former capital and one of its oldest cities,...

Krakow: transforming the city towards climate neutrality
In The News
Is Europe doing enough to tackle climate change?

On 23 April, EIT Climate-KIC CEO Kirsten Dunlop spoke...

Is Europe doing enough to tackle climate change?