We were joined by a stellar cast on 5 November for UK Finance's first ever conference on climate risk, green finance and sustainability. In welcoming a packed house, Stephen Jones, CEO, UK Finance went so far as to say that the response of banking and finance to the climate challenge would define the sector over the next decade. Sir Roger Gifford, Chair, Green Finance Institute introduced the institute as the primary intermediary between the public and private sector on issues concerning green finance before describing that challenge as one of moving away from an economic model reliant upon resource depletion.

In a themed discussion around 'science, society and civic society?, we heard from:

• Dr Emily Shuckburgh, Fellow British Antarctic Survey, Cambridge University who provided irrefutable science about climate change and rising sea levels, before explaining that 2050 works as a net zero emissions target - but only if we reverse four decades of emissions growth by 2030
• Daisy Powell-Chandler, Director, Meyland Strategy who conveyed that in addition to being mindful of the reputational risk involved in not acting upon climate change firms should also consider the price this involves not only in terms of investors, but customers, employees and regulators
• Matt Scott, Head of Green Finance, BEIS who underlined that the Green Finance Strategy published in July was focused principally on the greening of the economy and the opportunity that COP 26 being co-hosted by Glasgow in 2020 presented for build on the momentum generated by the Paris Agreement

We then reminded ourselves that it is four years since Mark Carney, Governor, Bank of England had delivered his ?Tragedy of the Horizon? speech at Lloyds of London and that this anticipated the setting up of the Financial Stability Board-sponsored, Michael Bloomberg-chaired Taskforce on Climate-related Financial Disclosures (TCFD). The model this devised - governance, strategy, risk management and metrics and targets - sits at the heart of the regulatory expectations currently being put in place. Mr Carney also made a distinction between ?physical? risks, as in those resulting from the catastrophic weather events that we see played out on our TV screens with alarming regularity, and 'transition? risks as in those arising from a revaluation of a large range of assets as the costs and opportunities of adjusting towards a lower-carbon economy become transparent. The ?Tragedy of the Horizon? would be if we were to fail to take action before climate change became a defining issue for financial stability.

We then held a practitioner panel on the challenge facing banking and finance in which:

• Ben Carr, Director, Analytics and Capital Modelling, Aviva outlined the way in which Aviva is beginning to measure the carbon intensity of its investments, also relating some of the challenges around scenario analysis
• Zoe Knight, Group Head of Sustainable Finance, HSBC profiled the activities of the HSBC Centre of Sustainable Finance including work with carbon-intense industries such as steel, shipping, concrete and aviation to help identify a path to a lower carbon future
• Andrew Howard, Head of Sustainable Research, Schroders explained the need for a different approach to climate risk analysis given there was not a back catalogue of evidence that could be drawn upon

Eric Usher, Head, UNEP Finance Initiative turned to the UN Principles for Responsible Banking launched at the UN General Assembly in New York in September, with the support of 130 banks and savings institutions in the first instance and a further 40 or so supporting organisations including UK Finance. Speaking more broadly to related international issues, Eric touched upon whether we may need a form of carbon border adjustment tax to address the offshoring or export of the sources of emissions. In a panel discussion chaired by my colleague Rebecca Park, we heard from Elsa Palanza, Global Head of Sustainability & Citizenship, Barclays, who outlined the benefit of the formula for banks of all sizes and nature that the common framework provided, Simon Connell, Head of Sustainability Strategy, Standard Chartered, extolling the benefit of the ?blueprint, resource and community? provided for banks from across the globe, and Simon Thompson, CEO, Chartered Banker Institute, who added the dimension of mobilising committed finance professionals as key to the mainstreaming of sustainable finance.

Gill Lofts, Sustainable Finance Leader, EY provided an introduction to the Embankment Project for Inclusive Capitalism that EY has been running for the last 18 months, with over 30 companies and investors representing over $30 trillion of assets. This is premised upon a long-term value framework that combines human capital, consumer and societal considerations with financial returns.

In closing I said that ?climate risk? had been our first working title for the event, ?green finance? the second and 'sustainability? the third, and that in the end we decided to maintain all three since, although interrelated, each brings a distinct perspective that complements the others. So, while it is important that banking and finance builds climate change into risk modelling, we are not going to achieve net zero targets unless we think much more in terms of financing green innovation.

Looking at this through a wider lens, the UN Sustainability Development Goals in speaking not only to climate, oceans and land, but affordable and clean energy, decent work, industry and sustainable cities and communities, provide a language that resonates with people's everyday lives. This underlines the opportunity for economic regeneration if we go about framing the ?green industrial revolution? in the right way.

Or as our speakers on the day explained: