When addressing the challenge of quantifying these transitional risks, there are several questions we should ask ourselves: Is this something that keeps our executives awake at night? How is this strategic path playing out in terms of ESG in the organization? Where does ESG sit? Who has accountability for it? Is there enough awareness of how that strategic path is articulated to those who have to deliver it? 2. ESG Resolution ESG is not just a threat. It’s also a real market opportunity. In 2019, Mark Carney stated that combating climate change is ‘the single biggest investment opportunity in history’. According to an Oliver Wyman report, the transition to a low carbon economy represents ‘the single biggest growth opportunity’ for global financial services. Yet this hasn’t percolated down through most organizations. The majority of insurance executives still appear to be focused on improving disclosure rather than revising business strategy to support the transition to a low-carbon world. How big is the market opportunity? How do we articulate it and start uncovering growth options and deploy a new execution mindset? Financial services and insurance providers display an increasing appetite for engaging their retail customers and commercial customers on sustainability. But there is more to be done. As highlighted above, even though asset managers are redirecting their investment funding towards responsible investing, they are still lagging behind. High level sustainability blueprint Financing Investing Analyzing Insuring Reporting P2P lending & Portfolio Geospatial Transition risk PCAF, TCFD, microfinancing evaluation analysis modeling CPA, CASB, CDP reporting TransitionTech Thematic fund 1.5e modeling P&C risk Impact reporting programming creation assessment Commercial ESG scoring Scope 1, 2, Historical claims Shareholder project financing for traded 3 carbon review advocacy voting companies accounting Green bond Deal-flow Climate risk Risk vs. impact Annual reporting insurance analysis service analysis evaluation & regulation compliance Electrification/ Transitional Fossil fuel Biodiversity Transition risk gasification divestment dependency risk protection premium accounting guidance modeling modeling Source: Based Redsand Ventures workshop design for 4th March 2021 30